Last Thursday's historic vote by Britain to exit the European Union has been about the only topic on any major (or, for that matter, minor) newscast ever since. The financial markets on both side of the pond completely freaked out, egged on by those aforementioned newscasts' admonitions about how terrible this was going to be for citizens of Britain, the E.U., and the world.
I mean, it was so bad that British stocks, as measured by the FTSE 100, closed last week with only their fifth best weekly performance for the year, and that's after Friday's market rout.
Heck, even after the immediate market shock last Friday, the FTSE was only down 1.7% year-to-date. And that's before dividends. And by Friday's close, the British index exceeded it's pre-Brexit level.
Think about the long term. Don't react emotionally. Stay the course and think through your investing actions. I will admit that I tilt toward the belief that Brexit will be economically bad for Britain in the long term, for various reasons , but I'm also of the opinion that the complicated changes necessary for the UK to leave the E.U. will take significant time. We will only be able to measure the impact over a period of years, not months or days; panicked headlines of the week have little utility for investors. Moreover, the amount of voter regret we've seen from those who voted to leave but apparently didn't mean it, not to mention the walking back of several promises made by those campaigning to leave, shows that reality is setting in. It's entirely possible that some sort of "do-over" vote, or another effort to blunt the impact, may be in the offing.
So while the last week has been ... fun, it's not terribly germane. I took advantage of the surging implied volatility to increase my returns by twice. My positions posted in my fb closed group as I can't post it here.
Next, giving thanks to some of the readers who turn up for the talk I had. My class is now full and overloaded. Well, it's a good problem. I'm grateful for your support and I will do my best to deliver value to you.