Today we received the unprecedented news that the United Kingdom (U.K.) (England, Scotland, Northern Ireland & Wales) has voted to leave the European Union (EU), which had led to significant volatility in the global markets.

  •  Exiting was unexpected, even though a close vote was anticipated
  •  The UK has been a member of the EU since 1975
  •  No immediate changes, it is the beginning of a political process that may take two years or more to fully execute.
  •  Central banks stand ready to provide whatever liquidity support is needed.
  •  In the near term, uncertainty, will lead to some volatility in the markets.
  •  Our global economic system is better prepared to deal with financial volatility of this nature.
  •  The UK will still exist under EU law throughout the withdrawal process
  •  Initially a negative impact on the UK economy – lack of confidence with consumers, political instability, recession possibilities and a rise in inflation
  •  Positive for UK exports in the short term
  •  This may cause the EU to re-think some of their policies and move to more pro-growth initiatives.
  •  The United States is insulated, though not immune, from events overseas.  Our economy is impacted by global events, but not dependent on them.
  •  The US will have some impact from this, a reminder that 70% of our economy is consumer based and thus the US could be a long term beneficiary.
  •  A possible negative impact on US exports, dollar will most likely rise.
  •  Saving and investing are focused on our short, intermediate and long term goals, regardless of economic events.
  •  Planning, discipline and structure, not emotions, help us to confidently pursue our plans. 
  •  Markets adapt, policy makers adjust and businesses will change course as needed to seek profits.
  •  We are always available to discuss these details personally with you.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security.

Economic forecasts set forth may not develop as predicted.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.