The decision by United Kingdom voters to leave the European Union will have
profound effects on the U.K. market as well as the rest of Europe and the
broader global markets. Based on our many years of experience in all types
of market conditions, we believe the impact of this decision includes these
Stocks may correct. We expect U.K.-based stocks to
correct swiftly and to drag Europe-based stocks down with them, as a
flight to perceived safety intensifies.
We believe bond yields may remain at or near historical lows.
Flows to perceived safe-haven credits, such as U.S. Treasuries and
Japanese and German government bonds, should further suppress yields.
U.K. recession is possible, with potential contagion in Europe and
Asia. Reduced prospects for domestic companies, capital
outflows amid such uncertainty, and partial paralysis of the world’s
fifth-largest economy could result in recession.
Newton Financial Network will maintain our
disciplined investment approach. Despite expectations for a
more volatile environment, we will maintain our bottom-up perspective
and are not making wholesale changes based on the Brexit outcome.
Please contact us if you have questions or if we can be of further
W. Edward Newton, Jr. CPA, CFP®
Newton Financial Network
13850 Ballantyne Corporate Place, Suite 500
Charlotte, NC 28277-2830
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