The Brexit vote surprised most of the pundits. How will this affect our economy and our markets? Frankly no one knows for sure, but while it may be an inconvenience to some of the large financial institutions, it should not have a material effect on the U.S. economy. Our feeling is that the world isn’t coming to an end and investors should not respond with a knee jerk reaction. In a few weeks, or even a few days, we will look back on today’s market action as a blip in a long-term bull market. If the market does come down some more we would look at it as a buying opportunity. Remember, yesterday the Dow Jones Industrial Index was up 230 points anticipating a vote for England to stay in the EU. Presently the DJIA, which was down 500 points at the opening, has come off its lows for the day and is down about 350 points. It is at the same level as it was three days ago which is encouraging.
June 24, 2016