Investing Lessons from Brexit

The impact of Britain’s vote to leave the EU may take years to play out, but there are several lessons investors can learn in the meantime. Daisy Maxey of The Wall Street Journal offers the opinions of some investment and behavioral-finance experts: Timing: A Loser’s Game Translating geopolitical uncertainty into potential market movements is very difficult because, according to William Bernstein, investment manager at Efficient Frontier Advisors in Eastford, Connecticut, “it can be highly counterintuitive.… Read More

Bryon Wien’s Sobering Thoughts on World Markets

“The ‘Leave’ outcome is a setback for growth in Britain, Europe and around the world at a time when economies are generally struggling. Not a good sign for markets for the rest of the year,” writes Blackstone strategist Byron Wien in a recent article for Barron’s. Wien references the opinion of Bard economic historian Walter Russell Mead, who believes that Brexit and nationalism are generally born of a “systemic crisis” related to: Economic vulnerability of… Read More

Bargain Shopping in Europe

When considering shopping for “cheap” stocks that have emerged post-Brexit, keep in mind that this group of stocks has offered bargains for quite some time. In a recent article for Forbes, John Reese, CEO of Validea, explains that while investing overseas may seem smart due to the current political and economic turmoil, investors may be better served by focusing on company-specific financials and fundamentals. Here are five European stocks that get high marks according to… Read More

Machine vs. Man — Algos the Winners Post Brexit

“The computers got it right and the humans got it wrong,” was the gist of last week’s Wall Street Journal article about attempts to capitalize on the Brexit vote. This was partly due, it said, to the fact that too many investors were prone to “projection bias”: that is, betting on what they wanted the outcome to be. A fund category sometimes referred to as commodity trading advisors (CTAs) uses trading algorithms to identify market… Read More

New York Times Columnist Says Sit Tight After Brexit

As an investor, it’s not unusual to bristle when the stock market takes a dive then fight the impulse to cut and run. In the wake of Brexit, The New York Times “Your Money” columnist Ron Lieber offers the following words of wisdom: Your portfolio is probably made up of a diverse group of assets, so all of your eggs are not in the stock market basket. If you have been investing in a global… Read More

Brexit Backlash on U.S. Economy

Although top finance officials claim the damage caused by the U.K.’s exit from the EU isn’t enough to trigger the U.S. into a contraction, a falling pound and euro could cause the dollar to surge and further dampen demand for American exports. This according to last Friday’s article in the Wall Street Journal. The U.K.’s exit is expected to sting the U.S. economy and upset the market as well as corporate strategies of domestic companies… Read More

The Fool’s Housel on Brexit: Hurry Up and Wait

Thursday’s vote by the U.K. to leave the European Union has precipitated a host of commentary across countless channels. Last Friday, Morgan Housel of The Motley Fool offered frank advice about what investors should be doing. And that is…nothing. By voting to leave the EU, Housel says, the U.K. has ceded to France its title as the world’s fifth largest economy. But as far as The Motley Fool is concerned, the path is clear. “We’re… Read More

Allianz’s El-Erian Discusses Brexit

According to Mohamed El-Erian, chief economic adviser at Allianz, there is a common thread running through Brexit, claims of inconsistency in the Fed’s actions, the rise of negative interest rates and ‘strange politics”. Investment News reports that, in a recent media briefing, he described the commonality as “advanced economies’ inability to grow in an inclusive manner.” El-Erian explains that when a small segment of the population reaps the benefits of a sluggish economy, “strange things… Read More

Waiting to Exhale: What Lies Ahead After the Brexit Vote?

“The healthy economy is one that makes its own decisions,” says Rob Arnott of Research Affiliates concerning possible fallout from Britain’s vote to stay or leave the European Union. In a recent CNBC interview, Arnott shared his views on the concern around Thursday’s result and how it will impact the markets. According to Arnott, the “fear mongering” around the vote is “a little over the top.” He says, “Roll the clock forward ten years. Is… Read More