Good Morning
As many know, the BREXIT vote is now official, and it is “Yes”, UK will be leaving the EU. Overnight futures CRASHED in response to this, and today’s (and into next week) markets will react very badly to this news. This event is a reminder of the delicate nature of the I-Fund, which will suffer from this. I have discussed this regarding the I-Fund numerous times on this site….big returns, however big risks (at times).
This will serve as fodder to keep US interest rates low, as we cannot have a BREXIT and a fragile US climate financially, which raising interest rates would contribute to.
I personally am not leaving stock funds, most reactions to this are panic selling and I anticipate things will stabilize in one to two weeks. The fact that it is Friday, with major money managers not wishing to “see what happens” over the weekend, and instead prefer to unload positions, is not helping.
I remain 50% S-Fund and 50% C-Fund.
Thank You
-Bill Pritchard
