June 24th, 2016 will be considered an historic event when the citizens of Britain voting in a referendum to leave the EU, after more than 4 decades. Many investors were quite surprised by the result. This decision has resulted in economic uncertainty and market volatility. Investors woke up to a sea of red across financial markets in the aftermath. The Canadian stock exchange had the least downturn in sell-offs.
One thing to remember during times of uncertainty…Markets tend to over-react, which tend to cause a dislocation between stock prices and actual value. Newsmakers will make this situation sound much worse than it is.
Although this type of MACRO event can feel painful, your investment managers, with your investments/insurance company, will have an opportunity to buy great companies at a great price, and will ultimately outperform for your investment portfolio.
This is definitely not a time to panic, as these scenarios tend to be the best buying opportunities. I know that I will be adding to my RRSP portfolio in the next week or so. I always tend to think what would Warren Buffett would do? He would be buying now, not selling!
If you would like to meet to review your portfolio, or have a 2nd opinion, feel free to connect with me. My time can be yours!