Dear [fname],

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 key takeaways:

 

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 worlds 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 assistance.
 

Regards,

W. Edward Newton, Jr. CPA, CFP

Newton Financial Network
13850 Ballantyne Corporate Place, Suite 500
Charlotte, NC 28277-2830
704.552.8689
Website: http://www.newtonfinancialnetwork.com/

 

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