The world economy is still reeling from the Brexit vote held on June 23. On that day, people in the United Kingdom voted by a four-point margin to leave the European Union. The obvious question people in this country had in the days after the vote was, “How will this affect me?”
According to CGO President and Founder Claude Ohanesian, there are several things to keep in mind when it comes to assessing the fallout from Brexit.
Expect the unexpected. The ramifications of this divorce have yet to be felt. Issues with England, the upcoming U.S. elections and the wild card of terrorism guarantee continued volatility will remain – don’t look for a return to the status quo for some time, if ever.
Pay attention. Keep a sharper-than-usual eye on your portfolio in the weeks and months ahead, or have a trusted financial advisor do it for you. Preferably your advisor has years of experience and weathered economic storms in the past, and has the kind of analytic skills needed to remain calm in the face of heavy winds and choppy seas.
Watch the Dow. We believe it will trade between 16,500 and 18,500 for the remainder of 2016.
Keep your eye on Scotland. If that nation decides to stay with Britain, things will be okay. If they decide to part ways, it might not bode well.
See what the Federal Reserve does. At this point, we don’t believe they will raise interest rates.
And our prediction for the U.S. economy. It will skirt downturn or recession.
If you have questions about how Brexit might affect your portfolio, contact CGO Wealth Management. We offer objective advice and make the fact-based decisions your portfolio deserves.