A few of you are waiting for me to talk about Brexit. Part of me is honored that you care about my opinion. The other part of me is appalled that you care about my opinion. Why would you listen to me?!? 😉 Here goes:
- I don’t know what’s going to happen.
- Nobody else knows what’s going to happen.
- The media makes money when it speculates on what is going to happen and you pay attention to them. So they will continue to speculate.
- Whatever does happen will takes years to unravel at the minimum. That means a lot of uncertainty for a long time. If you sell during times of uncertainty and buy during times of relative calm, you’ll likely be selling low and buying high. Not a very good recipe for investing success.
- If you are truly a long-term investor, then you must know that some crazy things are bound to happen over long periods of time.
- You could see this event as another “stress test” of your plan. The United States also has a big election coming up this year, so you should prepare for even more uncertainty.
Overall, I am not making any changes to my investment plan. Instead, I would try to maintain focus on what you can control. Financially, that means:
- Investing in yourself, your skills, your network, your career.
- Track and/or control your household spending.
- Shore up your cash cushion, emergency fund, whatever you want to call it.
- Managing your investment expenses, including trading costs, management fees, and taxes.