The outcome of Brexit possesses both short- and long-term ramifications that will affect markets around the world — not just the UK.
“The U.S. is still the safest place,” says Simon Calton, CEO of Rycal Investment Group, based in southwest England but with offices in the U.S. "Invest in U.S. dollars ... diversify and look for a long-term strategy."
Although a vote on whether the U.K. will leave the EU or stay is too close to call, advisors should consider the implications of an exit.
No one knows yet which side will prevail in Thursday’s referendum on U.K. membership in the European Union, but if votes to “leave” top those to “remain,” financial markets are expected to tank.
“Markets haven’t priced in any of this,” says Jacob Kirkegaard, senior fellow at the Peterson Institute for International Economics, referring to a “leave” victory.
And the fallout could last for years, marking Brexit as the biggest shock to financial markets since the 2007-2008 financial crisis.
Polls from a day before the vote were too close to call – an online poll published Wednesday showed a “statistical dead heat,” with 45% in favor of leaving and 44% for remaining, but London’s famous bookmakers give favorable odds for the “remain” votes to win out.
Read full article: ThinkAdvisor