Brexit and The U.S Economy

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

On June 23, 2016, citizens of the United Kingdom gathered to vote on whether or not the UK should leave the European Union; the results were as follows - 52% voted in favor of leaving, while 48% voted in favor of staying.

Since then, "Brexit," which has become the popular abbreviation for "British exit," has attracted worldwide attention, especially in terms of how this will effect the economy. Naturally, one may expect that the markets are in for a rather bumpy ride - it's no surprise that markets hate uncertainty, and the Brexit decision has certainly left a lot of us feeling uncertain about what to expect next. However, although U.S stocks lost $1.4 trillion of market value on the first two trading days after the decision to leave the EU was made, new doors may be opened for investors.

Brexit and The U.S Economy
While it may be tempting to rearrange your portfolio as soon as possible, the best thing to do right now is stay calm and don't panic - especially if you have long-term goals that you're working towards. In fact, recent news explains that the U.S markets actually had somewhat of a rebound at the end of last week, and some sources suggest that the impact we feel from Brexit won't be too substantial - did you know that the UK accounts for less than 4% of global GDP? The Financial Times explains that our exports of goods and services to the UK account for less than 0.7% - yes, just 0.7% - of our country's GDP, so even if economic turmoil is felt in Britain, serious effects for us should be minimal.

What To Do Now
Despite any feelings you have about your current investments, the best thing to do may be to just wait. Especially since the process of making the leave official can be a quite lengthy one, a lot could still happen between now and next week, next month, even next year. 

Here at American Investment Planners LLC, we realize that sudden and drastic changes in the market can be distressing. That's why it's so important to have a financial planner that can help walk you through times like these! In addition to being able to answer your questions, a financial planner can also review your portfolio with you to ensure that the goals you have for yourself are in line with your current strategy.

To learn more about the financial planning services we offer, or if you have additional questions or concerns about Brexit, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com.