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Brexit and your investments: what you need to know

With the Brexit deadline looming, the UK has still not achieved a deal with the EU powers that be. Will levels of uncertainty at an all-time high and scenarios such as a second referendum, a general election or a no-deal Brexit inching closer, the impact to investors is naturally a keen topic of discussion.

Uncertainty and risk are always going to part of any investment decision you make. We know from history that markets have always experienced ups and downs and that eventually, stock markets do recover from downturns despite the doomsayers.

Remember the hype around the election of Donald Trump, with catastrophe predicted for stock markets and ongoing economic woes for the US? Instead, markets were buoyed by the announcement of Trump’s election.

According to S&P Capital IQ, historically, market shocks are brief and regain losses within an average of 14 days. Research shows the benefits of long-term investment with a five-year time frame typically reflecting the normal market cycle.

That said, your financial advisor should never advocate a “set and forget” approach to your investments.

Regular reviews can help you plan for the future and adjust your strategy in the event of any changes to your situation that may no longer align with your investment strategy.

For example, your age and your approach to wealth accumulation will be key factors in determining whether your current financial strategy is the best one to ride the waves of Brexit.

As currency markets will bear the brunt of any immediate impacts of Brexit negativity, Sterling will likely weaken. So, if for example you’re considering retirement soon and have funds tied up in a UK pension, it’s useful to explore what options are available to you and what might help offset any upset to the pound.

While there is no way of knowing what will happen after March 31, speaking with your financial advisor about your investments’ performance and what options are available to you will help you make informed, educated decisions about your financial strategy.

Get in touch with Hennelly Finance today at info@hennellyfinance.ie or on telephone 091 586 500 to make an appointment or call in to our new offices at Aonad 3B, Tí Phuirséil in Bearna, Gaillimh.