BREXIT - What next?

BREXIT - UK votes to leave the

European Union

British voters decided last night, with a relatively clear majority (52%), to leave the Eurozone and the British Prime Minister, David Cameron, resigned.

Despite multiple views on the situation, a few points remain very consistent when it comes to "Brexit":

The short term volatility should not cause us to be rash and act quickly as the initial selloff has already rescinded and additional supporting actions of the various Central Banks is likely.
Most portfolio management teams had already thought of the potential for this situation and in many case are already positioned without the need for significant adjustments.
The longer term political consequences are not clearly known at this point but the economic consequences outside of the UK, and to lesser extent Europe, are expected to be modest at this stage and not expected to stop the overall Eurozone recovery.

Click here for a piece from GLC Asset Management that provides a fairly compact outlook of this situation.

65 Excuses for Not Investing

Economic shocks, political turmoil, terrorist attacks, natural disasters... there will always be an excuse not to invest or not to remain invested; however, none of the global events listed below have had a lasting impact on the long-term growth of major financial markets over the past 61 years.

Investing may involve varying degrees of risk, however, not investing can prove a bigger risk to the pursuit of your future financial well-being.

The simple discipline of investing regularly in a diversified portfolio, and staying invested over the long-term, are time-proven investment strategies.

1950 - Korean War

1951 - Excess profits tax

1952 - U.S. seizes steel mills

1953 - Soviets explode H-bomb

1954 - Dow tops 300; 1954 - Market "too high"

1955 - Eisenhower Illness

1956 - Suez Crisis

1957 - Soviets launch Sputnik

1958 - Recession

1959 - Castro seizes power

1960 - Soviets down U-2 plane

1961 - Berlin Wall erected

1962 - Cuban Missile Crisis

1963 - Kennedy assassinated

1964 - Gulf of Tonkin

1965 - Civil rights marches

1966 - Vietnam War escalates

1967 - Newark race riots

1968 - U.S.S. Pueblo seized

1969 - Money supply tightens; 1969 - markets fall

1970 - Cambodia invaded; 1970 - war spreads

1971 - Wage/price freeze

1972 - Watergate

1973 - Oil embargo

1974 - Nixon resigns

1975 - U.S. withdrawal from Vietnam
1976 - N.Y.C. threatens bankruptcy

1977 - Energy crisis

1978 - Massacres in Cambodia

1979 - Three Mile Island 1979 - disaster

1980 - Abscam scandal 1980 - rocks Congress

1981 - Reagan and Pope shot

1982 - Worst recession 1982 - in 40 years

1983 - Soviets shoot down 1983 - Korean airliner

1984 - Iran/Iraq war escalates

1985 - U.S. becomes a 1985 - debtor nation

1986 - Bombing of Libya

1987 - Record-setting 1987 - market decline

1988 - Bank failures peak

1989 - Junk bond debacle

1990 - Iraq invades Kuwait

1991 - U.S. recession; 1991 - U.S.S.R. dissolves

1992 - L.A. riots

1993 - Mid-western U.S. floods

1994 - Fed raises rates 6 times

1995 - Dow tops 4000 then 1995 - 5000; market "too high"

1996 - Technology stocks 1969 - tumble

1997 - Chaos in Asian markets

1998 - Global economic 1998 - turmoil

1999 - Fears of Y2K problem

2000 - Internet "bubble" bursts

2001 - Terrorist attacks in U.S.

2002 - Worst bear market 2002 - since depression; Enron, 2002 - Tyco, Worldcom

2003 - War in Iraq; SARS

2004 - Geopolitical 2004 - uncertainty, $50+ oil

2005 - London terrorist attacks; 2005 - Hurricane Katrina

2006 - Middle East conflict; 2006 - nuclear concerns

2007 - Worries about U.S. credit 2007 - market

2008 - Credit rises; major financial 2008 - institution failures

2009 - Global recession; auto sector 2009 - and financial institution 2009 - bailouts

2010 - European sovereign debt 2010 - crisis

2011 - Japan, Fukushima 2011 - earthquake

2012 - China slowing growth 2012 - concerns

2013 - U.S. government 2013 - temporarily shuts down

2014 - Russia and Ukraine 2014 - conflicts

2015 - Paris terrorist attacks