The UK Voted to Leave the EU: What’s next for Your Portfolio?

The UK stunned the market and voted to leave the EU and sent markets on a wild ride to end June. This article from the Motley Fool does a great job of capturing our thoughts in the immediate aftermath of the referendum.

When negative shocks hit global stock markets we are not looking to sell and get out. We are looking to potentially buy in, by selling other areas of the portfolio that are likely performing well as a result of the news, like high quality fixed income.

The chart at the end of the article really speaks to our strategy. There have been many negative events that have happened over the years, but the market has continually powered through.  We believe that if you diversify your portfolio and exhibit the discipline to stick with equities that over time you will be rewarded.

 

 

Index Performance                                    June      2Q       YTD   Trl 1 Yr       

US Stock (Russell 3000)                                  0.21%    2.63%   3.62%    2.14%
Foreign Stock (FTSE AW ex US)                   -1.48%  -0.35%  -0.71%   -9.47%
Total US Bond Mkt. (BarCap Aggregate)     1.80%    2.21%     5.31%   6.00%
Short US Gov. Bonds (BarCap Gov 1-5 Yr)  0.96%   0.80%    2.36%    2.39%
Municipal Bonds (BarCap 1-10yr Muni)      0.99%    1.44%    2.70%    4.88%
Cash (ML 3Month T-Bill)                                0.04%   0.07%    0.15%     0.19%

 

About

Raffa Wealth Management is an independent investment advisor providing nonprofit organizations, high net-worth investors, and qualified retirement plans with a full range of investment consulting services.  We were established to fill the need for transparency, clarity, and vision in the professional management of investment assets.   Visit us at www.raffawealth.com

 

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