BREXIT is now a fierce reality which may produce months, if not years, of market volatility until the uncertainty of the effects of the U.K.’s exit from the European Union
- Establish your risk/reward profile, set up the asset allocation for the goal you are attempting to accomplish and look to rebalance to the percentages of each asset class, (stocks, bonds, cash, etc.) that may best suit your needs. As your needs or risk tolerance change, modify the asset allocation and the rebalancing criteria.
- If you are waiting to buy a position that trades actively and you have the cash available for it, consider a discussion with your financial advisor in the use of limit orders so that the buy could be executed without you having to constantly monitor the price. The opposite applies for positions you may wish to sell and the use of “stop-loss” limit orders.
- Revisit your asset allocation at least annually and make sure your investments reflect your sentiments and are “programmed” through systematic investments and automatic rebalancing to reallocate to your intended percentages on a periodic basis.
In the case of investment strategy as in many other facets in life the wisdom of Benjamin Franklin may be a great adage to adapt: “An ounce of prevention is worth a pound of cure.”