HH How Investors Can Prepare For The Brexit Vote

“Yes” vote or “No” vote, this may also be an opportunity for investors who believe that there is more growth potential overseas than domestically at this stage of this market cycle to allocate to international markets that they find most attractive. For example, if investors believe that Great Britain stocks will rally after the referendum and that the UK economy will continue to improve, there are seven current ETFs, some that incorporate currency hedges, which are focused on Great Britain. According to ETF Database, as of June 13, 2016, they are as follows:


On the other hand, if investors believe that European markets, as a whole, will rally after the referendum and that the Euro zone will continue to slowly improve, there are 94 current ETFs (which I will not list here but can be found at etfdb.com) that are focused on Developed Europe.

In our view, given the outflows that we have seen from these markets heading into the vote, it is highly likely that U.S. stocks, United Kingdom stocks and European stocks will all rally if the referendum returns a “No” vote and Great Britain decides to stay as a member of the EU, if only for the time being.. Conversely, if a “Yes” vote is returned, these markets may suffer a bit over the short term, but not by as much as some may anticipate given that this potential outcome is at least partially priced into market valuations. This will lead to future market volatility though in the days and weeks that follow given the uncertainty over what may, or may not, happen next.

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Disclosure: The overview above is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any of the securities listed. ...

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Louis Jackson 5 years ago Member's comment

I'm of the opinion that events like this don't have any major influence on the market. Sure, it could lead to a brief short covering rally on Friday and into the next week, but ultimately I think things return to normal quickly after. Brexit is starting to remind me of something like Y2K where a lot of people freak out until they realize that the date/event is basically a non event. Brexit and a breakdown of the EU may eventually become an issue, but I think that will be years down the road.