Brexit: What You Should Know

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MMM Newsletter and Website Header 10.2.15

I hope you had a great weekend! Happy Fourth of July week!

LRPC’s Monday Morning Minute for this week, “Brexit: What You Should Know” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory (RIA) firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. If you are short on time, take a look at each major heading below.

The Brexit frenzy continues! I thought you might find it helpful to receive an article this week that outlines what is important to know about Britain’s historic vote. There is a lot that is being written and talked about regarding Brexit. It certainly is the crisis of the moment. My hope is that this piece allows you to cut through all the chatter and take a look at what has meaning.

Have a wonderful week!

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Brexit: What You Should Know

By Schwab Center for Financial Research

Britain’s surprising vote to leave the European Union — a development commonly known as the “Brexit” — prompted a sharp decline in global financial markets, and the volatility has continued. We believe it will take time for the shock to fully work through the economic, financial and political systems in the United Kingdom and Europe. Here are our answers to commonly asked questions about this historic event: [Read more…]

Brexit Shock – What’s Next

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MMM Newsletter and Website Header 10.2.15I hope you had a great weekend! This will be an interesting week for the markets as a result of the Brexit vote.

LRPC’s Monday Morning Minute for this week, “Brexit Shock — What’s Next” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory (RIA) firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. If you are short on time, try to skim each section heading.

On Thursday of last week U.S. equity markets were up strongly, based on the perception that the citizens of the United Kingdom (U.K.) would vote to remain in the European Union (EU). When the votes were tallied, heavy voter turnout (72% of eligible voters) unexpectedly resulted in a mandate to exit the EU. The markets were shocked with the Dow plummeting more than 600 points on Friday. What’s next? Read what the experts from Schwab have to say below.

Have a wonderful week!

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Brexit Shock — What’s Next

By Liz Ann Sonders, Brad Sorensen, Jeffrey Kleintop, Charles Schwab

Key points

  • Britain shocked the financial community by voting to leave the European Union (EU).  Global equity markets plunged as traders searched for perceived safety in the midst of uncertainty. Short-term traders should be prepared for more downside, and the risk of a global recession has risen.
  • The U.S. economy is fairly healthy and should manage to stay out of recession territory in the near term, although risks have risen. Long-term investors should stay patient and disciplined.
  • The Federal Reserve seems highly unlikely to raise rates in foreseeable future and further economic stimulus cannot be ruled out. Across the pond, the Bank of England has made 250 billion pounds of liquidity available, with more action possible.

Brexit shock

Britain voted to leave the EU on June 23, referred to as “Brexit.” We would term this development a market and economic shock. International developed and emerging market (EM) stocks were up through yesterday in June, and over the 90 days leading up to the referendum, suggesting they were not pricing in a Brexit outcome. The initial shock of the unexpected outcome prompted a sharp decline in stock markets around the world and we believe it may take some time for the shock to fully work through the economic, financial, and political systems in the United Kingdom and Europe. With no visible catalyst to halt the slide, the decline in global stocks may continue, as the risk of a global recession increases. [Read more…]

Brexit: How Might Stocks Respond?

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MMM Newsletter and Website Header 10.2.15

I hope you had a great weekend! This is a big week for the United Kingdom (U.K.).

LRPC’s Monday Morning Minute for this week, “Brexit: How Might Stocks Respond?” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory (RIA) firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. This is a short piece I believe everyone can read in less than 60 seconds.

Citizens of the U.K. will vote on June 23 on whether to exit the European Union (EU). You are probably thinking, why should I care? Well, many economists feel that if the U.K. exits the EU, other countries may depart as well. The eventual outcome could be a dissolution of the EU. That, many feel, could lead to a worldwide depression. Checkout what the experts from Schwab think may happen below.

Have a wonderful week!

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Brexit: How Might Stocks Respond?

From Charles Schwab & Co., Inc.

Should I stay or should I go? U.K. voters are mulling this critical question as they prepare to vote on whether to stay in the European Union in a referendum to be held on June 23. Lately, markets have been uneasy about the potential answer. Opinion polls show the desire to leave the EU is gaining momentum among voters. Stocks, particularly in international markets, have fallen as investors contemplate the real possibility of a British exit from the EU — a “Brexit.” As markets react to the headlines, here’s what we think you can expect from the vote’s potential outcomes. [Read more…]