Investors will have a life after Brexit and the chance to make money from shares whatever the result of the poll in Britain on June 23.
Voters have to make their mind up whether to remain in or leave the European Union with the polls predicting a slight lead for the leave campaign.
Nevertheless, the referendum result will allow investors to take advantage of the reaction of global markets to the election result, argues Nigel Green, boss of the world’s largest financial advice firm deVere Group.
“Naturally, global financial markets fluctuate in response to events such as referendums, general elections, and other major geopolitical situations, both in the run-up and afterwards,” said Green.
“But with the EU referendum being so close and therefore so unpredictable, and with its outcome having such a far-reaching and long-term impact, it is likely that the markets will react perhaps more than they would in other circumstances.
Good potential returns
“It can be expected that investors will be capitalising on the post-Brexit referendum volatility in global financial markets – whatever the outcome.”
Traditionally, unpredictable markets put the brakes on investors buying shares, but Green believes many savvy investors welcome the impending upheaval.
“They will be poised to take advantage of the anticipated fluctuations,” he said.
“While some are put off investing because of volatility, many of the most successful investors welcome it. This is because profitable opportunities are found where there are fluctuations.
“Fluctuations can cause panic-selling and mispricing. High quality equities can then, for example, become cheaper, meaning investors can top up their portfolios and/or take advantage of lower entry points. This all, in turn, means greater potential returns.
Nigel Green’s comments on Brexit
Soros Warns Brexit May Cause Pound Plunge Worse Than Black Wednesday https://t.co/AUhAtm6myJ via @business
— Nigel Green (@nigeljgreen) June 21, 2016
Investors to capitalise on post-Brexit opportunities – whatever the result | IFA Magazine – https://t.co/xo1HkJuyeX
— Nigel Green (@nigeljgreen) June 20, 2016
Brexit: UK expats in UAE have their say https://t.co/7zxHPLgE1I
— Nigel Green (@nigeljgreen) June 20, 2016
The profits of doom
“A recent instance of this scenario would be oil. Oil prices are now up around 70% since the beginning of the year.”
Green also feels investors do have a life after Brexit despite the doom and gloom forecasts of both sides in the debate.
“By their nature, all markets are subject to volatility. A well-diversified portfolio and a good fund manager will help investors capitalise on the opportunities that volatility brings and sidestep potential risks as and when they are presented,” he said.
“However the UK decides to vote and whatever the economic repercussions for the world economy, aware investors will find ways to profit as the world readjusts to a post-Brexit referendum reality.”
