My Q&A with my friends on Brexit - An investment advisor's perspective


So Britain has decided to leave EU and it is a big deal. World markets, including Indian ones, reacted sharply negatively to the news. Since I am a SEBI Registered Investment Adviser, some of my friends thought it might be a good idea to get my 'expert' opinion. Here are some of their questions and my answers to them.

Friend: What do you think will be the impact of Brexit on the markets today?
Me: I don’t know.

Friend: What do you think will be the impact of Brexit on the markets this month?
Me: I don’t know.

Friend: What do you think will be the impact of Brexit on the markets this year?
Me: I don’t know.

Friend: Do you know anything at all?
Me: I think in the long run we will be more affected by our own policies than Brexit. In any case markets have seen worse economic and geo-political events and have given good returns in the long run.

Friend: Okay, so are you buying because of Brexit?
Me: No.

Friend: Then are you selling because of Brexit?
Me: No.

Friend: So what are you doing?
Me: Nothing.

Friend: What should I be doing because of Brexit?
Me: Get a financial plan - figure out your financial goals if you have not already and start investing systematically according to your risk profile. Invest in goals not markets and sleep peacefully.

The following tweet puts it well -