Wall Street Shows Recovery After Brexit

Brexit has definitely hit the worldwide economy hard, but Wall Street at least shows signs of recovering.
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As pretty much everyone knows, during the “Brexit,” vote wherein a small majority of UK citizens voted to leave the European Union, the British pound plummeted to a 31-year low and took the stock market with it. Wall Street didn’t suffer as hard a blow, but there was still a pretty significant drop of stock values. The Bank of England is bracing for whatever comes next as the United Kingdom decides how to handle leaving the EU. Chances are no matter what they do, it’s going to hurt their economy, and the global economy, in the long run.

In the days following the initial slump, though, Wall Street reported gains that have taken back some of the ground lost following the vote. The campaign to leave, though it did claim some economic advancements, was quite obviously a political one, and the reality of the resulting economic issues weren’t put forth.

It’ll take some time to recover. Recovery will likely be slow until the “divorce” is finalized, and even then, things might not go all that well. It’s too early to know. But it’s not too early to start planning for the future, and there’s one simple rule that everybody needs to remember: don’t panic!

Don’t dump your stocks, or bail on the market, or buy a ton of gold and hide it around your property. That sort of activity is what made the Great Depression hit so hard so fast, making recovery that much harder. This is a different situation. The economy likely won’t hit nearly as hard. But Brexit will have an impact on the global economy, and cutting and running will only start a chain reaction that exacerbates the problem. Be wise with you investments, as always, but don’t overhaul your entire portfolio or your strategy because of this. Keep calm and carry on, as the British are fond of saying.