Investors awoke last Friday to the news that the UK had voted itself out of the European Union. The British exit—“Brexit”—had come to pass, despite previous predictions that voters would likely opt to remain in the EU.
The surprising result sparked massive selloffs in equity markets around the world, as nervous investors weighed Brexit’s potential impact on global economic growth and stability.
Horizon has been monitoring the post-Brexit activity, including the selloffs. As Ron Saba, Horizon’s Senior Managing Director of Investment Management, explains in this video, Horizon’s active investment approach enabled us to plan and prepare for the potential post-Brexit fallout, taking steps to stay invested in global opportunities while limiting exposure areas most sensitive to the volatility of this event.
Mr. Saba points out that the financial markets have seen—and weathered—this type of event-driven volatility before. As the UK and the European Union begin the slow process of negotiating how to move forward, investors’ attention should return to the global economy and other underlying drivers of returns.
Horizon will continue to work through this Brexit event to empower the advisors it works with to help their clients achieve their financial goals.