Saturday, June 25, 2016

Brexit and Stock Market Volatility

You probably heard the news about the Brexit vote results on Friday, June 24, in which a majority of United Kingdom voters voted to leave the European Union (EU). If you caught any financial news, you heard that global stock markets dropped a lot in response. I'll discuss the stock market reaction in more detail below, but the most important message for long-term investors is to not worry about daily stock market volatility. As I've discussed before, worrying about daily financial and economic news can be detrimental to your emotional health, and if you act on scary-sounding news or daily stock market volatility based on emotions, it also can be detrimental to your wealth.