Investors around the world woke up to the shocking news that Brexit is real.
The media got it right this time—the vote was pretty evenly split, but the British pro-exiters won in the end. Two events occurred immediately following the announcement: 1) Prime Minister David Cameron resigned; and 2) Global markets begin falling, including the futures for the American exchanges.
As I write this, the markets are off their lows, but I expect that they will bounce back and forth today, as well as over the next few trading sessions. Investors and money managers hate uncertainty, and the world is now asking lots of questions about the future of the European Union, and more specifically, how this significant event will affect economies and investments around the world.
Just as with past ‘news events’, it’s best to let this one ride for a few days. Don’t panic; don’t start selling your stocks. In my 30 plus years in the markets, I’ve seen lots of crises, and the markets almost always react the same way—panic selling, then hopeful buying, more selling, more buying, and eventually, they absorb the implications and return to normal trading patterns.
For now, here at Wall Street’s Best, we see no reason to panic, but we are closely watching the markets and the global reaction to this event. We will keep you updated as it unfolds.