Special Comments to Clients re: Brexit

Victor Levinson Comments

Financial stock markets around the world have reacted negatively to the unexpected victory of the “Leave EU” campaign in Great Britain.  However, US Treasury bond prices are higher, which often occurs when stock markets decline sharply.

While the immediate impact on the markets seems clear, the longer term outcome based on England’s negotiations with the EU over the terms of its withdrawal are unclear to all.

Further uncertainty is likely to arise over whether other countries are likely to follow Britain’s example.

Given all the uncertainty surrounding the consequences of the vote, we at Park Piedmont are advising that clients retain their existing allocations, and make no changes based on this one event.  As we consistently advise, the financial markets are impacted by many, many events and factors, and while Brexit is today’s main event, there will be many others to take the stage as the uncertain future unfolds.