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Fears Of Brexit

Some weeks have now passed since the Brexit vote and as you read this you are likely to be experiencing one of more of: boredom/euphoria/fear/exhaustion/uncertainty/anxiety/indifference.

We have often recently been asked how, as financial advisers, we have coped with the uncertainty of the referendum and its aftermath, namely the upcoming years of negotiations and even more uncertainty. We advise all kinds of clients, the young and the old, the wealthy and those who are struggling, on all aspects of their finances. We have had clients asking us if it is a good time to buy a house right now and if it is a good or a bad time to borrow to do so. We are asked whether it is a good time to invest new funds or conversely if we should be pulling all investments and pensions out.

And guess what? We don’t know! No one does, neither amateur nor professional, and if you meet someone who tells you they do know, give them a wide berth because they are the ones who will be likely to make enormous mistakes in their decision making. Steer clear.

When considering whether to buy a house to live in, think of your personal circumstances, not the market. Is now the right time for you and your family? 25 years or a lifetime later, any ups or downs in house values in the months after you have bought, will be a tiny blip. Buy if you should do for personal reasons and not if you should not.

And what about those troublesome investments and pensions? When is a good time to invest? Surely not now? And what exactly is the right kind of home for your money? UK stocks and shares? Global stocks and shares? Property? Government Bonds? Corporate bonds? How could we possibly know what is the best investment and when? It is a truism that there are two kinds of investor: those who don’t know how the markets will perform and those who don’t know they don’t know!

A competent professional adviser will admit he or she does not know what the future holds and then make recommendations based on science, not sentiment. In the week after the referendum, UK and European shares fell. But did you know that global funds rose sharply? So did government gilts and other assets. Invest Southwest portfolios have actually been rising in value, because we have used science to recommend a wide spread of assets. So post referendum don’t be fearful, seek advice from Somerset’s and the UK’s recently voted Top Financial Adviser 2016.


8 July 2016

The views expressed in this blog do not in any way constitute advice and are specific to the date noted. As time passes the facts can change and readers should consult their adviser for up to date advice on any matters covered within the blog. Invest Southwest offers an initial review, which is free of charge, however long it takes. From this we will be able to confirm how we can help and give you an opportunity to decide if you would like us to. Thereafter, we will provide you with detailed recommendations and exact costs. Please note that we promise not to levy any kind of fee unless we can demonstrate a benefit to you.

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