We understand that all you want to do during this year of elections, Brexit, terror attacks and other global upheaval is panic.
We won’t say don’t, but at least try not to.
At few points in recent history has “world on fire” been as popular a search topic as it is now. The U.S. presidential is approaching, and this year we’ve dealt with a faltering Chinese economy, the United Nations stepping away from the European Union, Turkey in disarray, terrorist attacks throughout the globe, a virus-and-scandal-plagued Summer Olympics in Brazil and… oh yes, your finances. How, exactly, is an investor supposed to cope with a world that increasingly resembles a 24-hour news network’s “breaking news” ticker?
With resignation. Nigel Green, founder and chief executive of the U.K.-based deVere Group, notes that his home nation’s turmoil is only the beginning. He predicts that not only are we not going to be on stable ground for a while, but that investors may need to get used to that reality.
“With the new finance minister, Philip Hammond, flagging a possible six-year renegotiation period, with ground breaking decisions being made by the U.K. and the EU, and with those decisions having a far-reaching global impact, investors need to accept that significant uncertainty, which leads to market volatility, is here to stay,” he says. “It is the new normal.”
His U.S. counterparts don’t really disagree. As soon as the Brexit vote cleared, Paul Jacobs, chief investment officer of Palisades Hudson Financial Group in Atlanta, noted that investors could take advantage of the situation by diversifying their portfolio.