Money Matters: Brexit: what should you do now?

Money Matters: Brexit: what should you do now?

Don’t attempt to outsmart the market, suggests Cavendish Medical’s Simon Bruce

The results of the EU Referendum vote on Thursday 23 June 2016 continue to generate as many ‘what ifs’ as the long-running campaign leading up to decision.

In the hours directly following the Leave result, some major implications had already taken place. The prime minister resigned, there was a slide in the value of the pound and the Scottish National Party formally declared it would consider a second Independence Referendum.

It is very clear that at this stage little is known about how UK political settlement, trade and investment flows will be affected in years to come. While a number of short- to medium-term domestic financial risks have come into sharper focus with a vote to leave, personal investing remains a long-term game, where the only constant is uncertainty.

Although we do not know what will happen to taxes, interest rates or inflation, we can ensure that the finances we can control are in order. As an investor, ask yourself whether your portfolio is able to withstand whatever eventuality is presented. Is it sufficiently globally diversified to withstand any future loss of confidence in the UK market?

At Cavendish our client portfolios were created to be robust in full knowledge that major geo-political events would occur with reasonable frequency.

One key issue is not to make knee-jerk reactions because of media reports or well-meaning advice from friends or family. The emotional investor who attempts to outsmart the market will often cause more harm to his or her finances than the markets.

 

Simon Bruce is managing director of Cavendish Medical – specialist financial planners for senior medical professionals in the NHS or private practice. For a second opinion on your finances, please call 020 7636 7006.

www.cavendishmedical.com 

The content of this article is for information only and must not be considered as financial advice. Cavendish Medical always recommends that you seek independent financial advice before making any financial decisions. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor. The value of investments and the income from them can fluctuate and investors may get back less than the amount invested.

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