Our most recent blog post at the beginning of July entitled, “What Should You Do After the ‘Brexit’ Vote?”, discussed the uncertainties and fears surrounding the decision of UK citizens to leave the EU and the resulting impact on the U.S. stock market. As we have discussed in the past, it is important to maintain a long-term vision with your retirement portfolio. It is important to not make any sudden, drastic changes to your allocation due to the ‘Brexit’ vote (and the subsequent drop in the stock market), or other similar short-term events.
Now that the dust has settled from the UK vote, we decided to take a look at where the stock market stands today. As you may have noticed, within a couple of days of the vote, the stock market returned to its prior levels, and has since gone on a run that has resulted in all-time highs for the S&P 500 and the Dow Industrials.

The message here is that the stock market will always experience ups and downs, especially in light of current events and headlines. However, if you are able to buckle in and wait out the downturns, you will be able to experience the subsequent highs in the market that will follow these. That being said, it is always important to make sure that your investment allocation is appropriate for your risk tolerance and time horizon. If you are concerned that you are over-exposed to the stock market in light of these factors, we recommend that you give DirectAdvisors a call so that we can help you be appropriately invested.

This article, published on napa-net.org, highlights the rebound of the U.S. stock market following the “Brexit” vote and how investors are now positioned as a result of recent market fluctuations.