So, Britain has voted to leave the EU. Here at MeaningfulMoney, I have remained politically neutral in the run-up to the vote. And now here we are, after a momentous night in British political history.
Financial markets have reacted strongly down at the open, but have rebounded a little this morning. Markets do not like uncertainty, and it's fair to say that there are many unanswered questions. The path ahead is not clear. Now we know the nation's decision, we need to make it work, and that process will take quite some time.
For many, the immediate concern will be for the value of your pensions and investments. We need to be prepared for a period of volatility, but this has been the case for several years now. The first half of this year has seen very high levels of volatility driven, among other things, by fears over a slowdown in China and a low oil price. So the ups and downs we're likely to see in the next few days and weeks are not solely the result of the Brexit vote.
Now, as in many volatile times in the recent past, it is clear that a wisely-managed portfolio should be widely diversified; spread across different asset classes and across the globe. This is common sense investing – not holding all your eggs in one basket. I am confident that such investments will be well-placed for the future, despite the short-term volatility.
I also believe that it is a mistake to attempt to trade around market wobbles. Though the value of investments may fall in the short term, money is only lost when investments are sold. If markets fall, there may be opportunities to buy in, but I remain convinced that investing, not trading, is the key to long-term financial success.
It is more important than ever to focus on long-term goals, and I remain committed to helping you do just that.