The Dow Jones was down 611 points today to 17,399 or 5,396 points higher than we were five years ago. The S&P was down 76 points today to 2,037 or 765 points higher than we were five years ago. The short term investor looks at the down part of the equation, while the long term investor looks where we have come from five years ago.
Here is what I like to call the crisis of the day. We have to have one every so often so the financial reporting world can have jobs.
Brexit (“British Exit”)
I am sure you have heard the term. The people of Britain voted yesterday to leave the European Union. So even though the vote was to leave, the British can’t leave until an Article 50 is filed with the EU. Article 50 is part of the European Union treaty that establishes the procedures how a country can leave the Union. Then there’s a two-year waiting period before they are actually out of the European Union.
The Beat Goes On
As you can see, Brexit is not a 100% done deal and won’t happen overnight. The British people will still be buying things from around the world. People will still travel to and from Britain. Economies of the world will keep on functioning. Will we have volatility in the near future? It’s quite possible.