Voters have voted in favor of BREXIT – British exit from the EU. David Cameron, the prime minister has resigned. This is old news.
The Billion Dollar question is, now what?
If you search google, you will find hundreds of thousands of articles on now what. There are some similar threads. Some experts believe it will be the end of the world as we know it, and some believe that it is not significant event.
The truth is, no one really knows. The truth is, it is the first time a country has decided to leave the EU. The truth is, we will know the repercussion and the ripple effects over time. The truth is, there will be some level of uncertainty.
So what is an individual stock investor to do?
The answer is simple, when others are fearful, be a bit brave.
Good solid companies will remain good solid companies. Brexit may have a temporary impact on the stock prices, it may also have a temporary impact on the businesses, but good companies with solid management will always bounce back.
If good companies are selling at a discount, use the opportunity to buy in small quantities. Be a little patient, and you will reap the benefits over the long term.
In other words, stay the course, be a little watchful, but don’t be scared by the market experts. At the same time, don’t jump in with both the feet either! For no one know what the next few months will bring.
In theory, the Brexit story may go on for over five years. Other than the sentiment, nothing changes over the next 18-24 months.