BrexitSubmitted by Mission Financial Planning on June 24th, 2016
I received a number of emails from money managers and analysts today regarding Brexit, Royce Funds summarized their opinion succinctly:
- The U.S. economy will not imminently fall into a recession—the U.K. only accounts for about 2% of global GDP.
- Seismic events invariably produce significant disconnects between companies’ market values and business values, creating attractive potential investment opportunities.
- Over the next three to five years U.S. companies that display strong profitability and effective capital allocation should be rewarded, regardless of the potential consequences of Brexit.
All good points; volatility is inevitable in the meantime.