1) Our financial markets are very fragile right now, and BREXIT is a great indicator of that. Some of the global markets have opened down as much as 10%. So if you own mutual funds, ETF’s, actively managed funds, or bonds for that matter, you have exposure to the impact that BREXIT will have on the global markets, whether it be thru your 401k’s, TSP’s or brokerage accounts.
2) BREXIT could lead the door open to other EU members looking to get out as well, so a dangerous precedent has been set. Will this eventually lead to the overall demise of the EU? All of this will lead to persistent instability.
3) History has a tendency of repeating itself! Global markets, as a whole, has seen unprecedented low interest rates for over 7 years now. Some countries, like Europe and Japan have negative interest rates. At some point, this will change, for it cannot last forever; and when things change, it will be rather quick and not that pretty.
My point is this, if you have funds that are invested for the long term or earmarked for retirement, there are options out there where you can still get a good portion of the growth of the stock market, but also get some protection on your principal. This way if something unexpected happens, i.e BREXIT or the upcoming presidential election, you can avoid having to wait years to get back to pre-correction levels. If you would like to get educated about other options that can eliminate that risk and give you some peace of mind by having some protection on your principal. Let’s talk