Quite a few of our clients are asking us what is going to happen with Brexit. The simple answer is, we haven’t a clue, but then again no-one does.
What we would add though is that where clients have money invested on a platform, the challenges presented by Brexit are no different than any other market changes, albeit this is on a larger scale.
What we all need to do is sit back and see where we want to invest our money – whether Europe, UK, Asia, America, Japan, Global, etc. Our view is that we believe trading arrangements will be made, and yes, they are taking their time getting there. However, European countries need the UK market just as much as the UK needs European markets. Just think how many German cars are sold in the UK!
We are not for one minute going to fall off a cliff edge at any time. That’s why we believe they will come to some agreement eventually, but this is all about politics, and the EU getting as much money from the UK as they can before the break.
If someone is very nervous about Brexit, the obvious thing is to reduce your levels of risk. If you have category four funds, you may wish to switch these for category three funds. Similarly with category three funds; switch for category two funds. We wouldn’t suggest any drastic changes though because you don’t know how all the companies you are invested in actually trade. A lot of blue chip companies for example get the bulk of their income from overseas, and you just do not get companies which only trade in the UK. So unless you know all the underlying agreements and areas of business, you could very well be jumping from the frying pan in to the fire.
In situations where we are dealing with the unknown – as is the case here – the best way to proceed is to do nothing or only small changes. Once you know what you are facing, then you can easily change things to adapt; that is the approach we would recommend.
This after all is why we use investment platforms – so your investment portfolio can be easily adapted to meet changing circumstances. You could do something now and repent at leisure, so we would advocate that you only do something when you are in full possession of the facts.
If you would like to discuss any investments with Money Advice & Planning Ltd, please contact us today on 0345 241 1808 or e-mail us at firstname.lastname@example.org.
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