Brexit - A Message from Beirne Wealth Consulting
As you are , more than likely aware by now, Great Britain's populace voted to sever their formal ties with the consortium of European nations. On the surface the U.S stock market has not seemed to think this would be a problem due to the fact the Dow Jones Average and the S&P 500 averages while not making new highs have , after a sharp sell off in February , returned to their highs of a year ago. However , when one puts a surgical knife to the market and looks inside the market a story of concern has been visible. The leadership of the market has been defensive large companies paying larger dividends, suggesting a degree of caution was warranted. Clearly, the global market's reaction to the vote tells a tale that the world investment community was not expecting the exit vote. We could go on chapter and verse about the economic impact on the various areas of the globe, but that is of little importance at this volatile time. What is important is how you are invested and what steps need to be taken to protect your capital during what could turn out to be a worrisome period. With 2008 as our most recent time of significant market volatility, it is important to remember that there were two episodic events in 2008. First, there was the Bear Sterns failure, which in and of itself, was dealt with by the Central Bank providing significant liquidity and that in fact resolved that issue. It was the second event of 2008, which caused the severe market meltdown . Our task , therefore , will be to determine which of these experiences we will have to deal with from the Brexit vote. First of all, we have been as a firm more cautious about the markets and have already made your portfolios more defensive. Secondly, your team of professionals with over fifty years of investment experience, have worked through many difficult times. We are prepared to become even more cautious should the need arise. We are sure you are concerned and we want you to know we are here for you either in person or via telephone. Please feel free to contact us in any manner. If there is a guarantee we can give, it's that we are here for you and on guard to protect your assets.