June 24th 2016
The vote to leave the EU has created many short term questions. No one can know the answers but the pound is being badly hit and the stock market is down after a week when markets had predicted the status quo.
The Save &Invest strategy for clients is to ensure that our clients have a strategy to cope with volatility. This volatility will be greater than normal but many see the UK being able to cope.
Economic growth will slow and indeed may go into reverse but Mark Carney, the governor of the Bank of England, says there is room within the monetary toolbox to boost growth. There is now likely to be an interest rate cut in the next couple of months.
One leading fund manager, Mark Barnett of Invesco Perpetual, said before the referendum that there is likely to be an economic pause and we would be in unchartered waters.
He continued by saying that over the longer term that he thinks the UK will cope as the economy is dynamic and had adapted to change before and can adapt to whatever is thrown at it.
We believe that the diversified portfolios that we create, whilst being affected in the short term, can be effective thereafter.