Breaking up is hard to do
Vote to leave leads to global market declines and higher volatility
“The outcome of the Brexit vote has clearly been a surprise to the markets. The ramifications from this vote are more political than economic in nature. This situation is nothing like the financial crisis in 2008. While financial markets will remain volatile, and possibly be weak for a period of time, history suggests that 6 – 12 months after a political crisis such as Brexit, the markets have recovered their losses and resumed trading on the basis of economic growth and corporate profits,” said Jeff Singer, Chief Investment Officer of Investors Group.
Times of turmoil can often present the greatest opportunities. Our portfolio managers are already taking advantage of attractive valuations in select markets and stocks.
“As always, perspective can be your greatest ally. The history of the S&P 500 has shown that since 2009, although initial responses to challenges and obstacles is typically negative, overall the market has more than tripled in that period,” said Singer.
Having a diversified portfolio within a long-term comprehensive Plan will help to offset current market volatility and serve you well as the markets react, respond and digest the news.
June 24, 2016
This Market update is published by Investors Group. It represents the views of Investors Group, and is provided as a general source of information. It is not intended to provide investment advice or as an endorsement of any investment. Some of the securities mentioned may be owned by Investors Group or its mutual funds, or by portfolios managed by our external advisors. Every effort has been made to ensure that the material contained in the commentary is accurate at the time of publication, however, Investors Group, cannot guarantee the accuracy or the completeness of such material and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein.
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