Brexit … the value of doing absolutely nothing
When Anglo-Saxons said that a single central bank and a single currency without a single state would be inherently unstable, they had a point.” – Jacque Delors, a co-founder of the euro, in an interview with the London Daily Telegraph , December 2011
Not too long ago the United Kingdom voted to leave the European Union. On Friday, June 24th the day after the vote was tallied, markets around the word reacted dramatically by plunging downwards. Coincidentally that very same day Tanja, Kiera, and I were enjoying a short trip to New York City.
Kiera and I in Grand Central Station … not worrying about Brexit.
That same weekend a friend emailed me asking, “Hope you are well and managing the fallout from Brexit”. I must confess I was initially perplexed by the comment. But then I realized that her question merely echoed the “disaster de jour” reporting so often propagated by our media. Ultimately, it took all of nine trading days for the markets to fully recover their temporary losses experienced from Brexit.
One of my favorite financial commentators, Morgan Housel, wrote a wonderful piece about “Brexit: What We Are (And Aren’t) Doing” which perfectly sums up what you should be doing (and not doing) as a result of the events of the last couple of weeks.