stream_imgAs was widely expected, this morning’s Brexit announcement saw financial markets react adversely as the City opened for business, both the FTSE and Pound fell sharply in early trading. However, since then, both have regained some of the lost ground – at close of business today the FTSE 100 had finished at 6138, which is 2% higher than the level we saw only a week ago.

Markets are likely to remain volatile over the coming days, and further falls are possible as the political landscape remains uncertain – but today’s fluctuation highlights why it is important not to act in haste.

History shows that markets also have a tendency to overcorrect – wherever the bottom may be we are likely to see a swift bounce from that level – timing is all-important and knee-jerk panics can prove very costly.

Many financial experts expect the dust to settle quickly, as one commentator put it; “with a dawning realisation that everything has changed and nothing has changed.” For the majority of UK companies it will be a case of business as usual on Monday and Brexit will prove to be yet another hurdle to successfully negotiate – it will take a minimum of two years to organise Britain’s exit from the EU, and it may even take far longer.

The Bank of England moved swiftly to ease concerns and the Banks monetary policy will remain supportive – interest rates rises are unlikely to be welcomed by anyone at this point in time – especially in light of the and widespread pre-referrendum scaremongering regarding the property market.

The Financial Planning Group will be updating our website regularly as events unfold – as well as sharing this information via email with our clients, please follow us on Twitter or subscribe to our monthly e-newsletter service.

Seeking simple, structured, disciplined and reviewable financial planning advice is something you may also wish to consider at the moment. Our aim is to always help our clients change the fundamental relationship they have with your money, and in doing so, this often gives them confidence and clarity in their own futures.

If you would like to arrange an initial consultation, then please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.

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