The United Kingdom has voted to end its membership of the European Union in a referendum, with 52% of the public voting to leave the EU and 48% to remain.
As an immediate consequence, the Prime Minister of the United Kingdom has declared his intention to step down by October 2016 and we will have a new Prime Minister taking us through the process of leaving the European Union.
An immediate impact of the vote is that the UK and global stock markets have seen a drop in value, and there has also been a fall in the value of sterling.
At Taylor Made, we expect the next few days to see some volatility on stock markets and currency exchanges, as happens whenever a significant event takes place. Markets do not like uncertainty, and there is always a lot of trading on sentiment at such times.
Taylor Made are monitoring other key global events, such as the slowdown in the Chinese economy, the low oil price, and the forthcoming American presidential election, all of which have contributed to recent volatility on stock markets and currency exchanges.
The Bank of England has already said that it will support the financial markets if necessary, which should help steady the economy during the long drawn-out process of leaving the European Union.
Taylor Made focuses on long-term investment strategies for our clients, and have always advised against reacting to events in the short-term. We have not changed our view.
Taylor Made would like to reassure our clients that holding a well-diversified portfolio will help negate the effects of short-term volatility and is the best way to invest over the long-term. We do not see any need to change these well-diversified portfolios on the basis of today’s events.
Taylor Made remain focused on long-term investment strategies for our clients. We will be monitoring markets and reviewing our long-term investment strategies in conjunction with our investment partners in order to ensure our clients investments remain appropriately invested and are managed by the best hands.