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Yesterday, Britain voted to exit the European Union. I don't normally write articles about the daily up and down of the stock market, but it is important to remember that when we invest for the future, we are investing for the long haul. Large crashes or falls in the market should not affect us. The media does not want you to believe this for a minute. Look at some of the headlines from today:
U.S. stocks hammered as Brexit shock rocks markets - USA Today
Brexit Vote Throws Britain and Europe into Turmoil - The New Yorker
U.S. Stocks Plummet 500 Points on Brexit - Fortune
Worst day in 10 months as Wall Street reacts to 'Brexit' - Reuters
Stunning Brexit vote rocks global stocks - CBS News
As you can see, people could be scared into believing that Brexit is bad for them. Avoid that fear, investing is long term. Stay with your investing plan for the long haul. The same could be said with what happened during the events of Black Monday back in August. The market will rise and fall. They only way to get hurt is to sell when the market is low.
The article, mentioned above, from Fortune actually points a positive light on the stock market dropping. It stated:
““Brexit is landing a body blow to the Dow and the S&P today. And investors should feel pretty good about it.””
Since Fortune is an investing website, it does not surprise me that they see this as a positive event. They go on to give evidence to support their claim:
““As measured in real economic terms, a Brexit news shouldn’t actually be all that bad for the U.S. The U.K. accounts for only a small portion of U.S. exports, less than 3% of the combined revenue of all of the companies in the S&P 500. Europe in general makes up a bigger portion, and the economic consequences of Brexit for the rest of the EU will likely be limited, at least in the immediate future.””
In my book, that says buy. If you have extra money laying around, then buy while the market is low and you will be able to celebrate the benefits of the market increasing over the next couple of days.
Do I know that the market will go back up? No. Do I know if the market is going to go back down? No. Nobody really knows what will happen to the market, all we know is that history can be a great indicator. What goes down must eventually go back up at some point.
So, my advice: Don't get scared and sell. Instead stick to your investment strategy and buy while the stocks are on sale.
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