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GOLDEN VALLEY, Minn. – As the cheers erupted in the United Kingdom while we slept, the stocks slid in the United States when we woke.
It made for unusually busy Friday for Matt Arnold, a senior investment advisor at Marks Group Wealth Management.
“It could be worse, you could be running a mutual fund in Europe today,” he said with a smile.
After Brits voted the UK and EU will split, what does that mean for our 401K’s back home?
“Panic is not an investment strategy and that rings true today,” said Arnold.
In other words, you may have taken a hit today, but he and others remind us Rome wasn’t built in a day either.
“As hard as it is to absorb this, it is a just a moment in time,” said David Schwandt with PlanViser Financial.
No more is that true than in front Schwandt’s computer. He showed KARE 11 a graph that indicates how this day compares to the last six months.
“There’s been a rather gradual and steady trajectory upward in the S & P,” he said.
In other words — the long view for investors he says is still a good one. Arnold added even though the Dow dropped more than 600 points, the market is now back to about what it was just last month.
So what about mortgage rates? Janet Yellen, the head of the Federal Reserve was looking at possibly raising interest rates this summer which is usually an indicator mortgage rates will go up too. After what happened across the pond, probably not anymore at least for now, they say.
“I’m thinking the global uncertainty that this causes will make the Federal Reserve probably delay and it may not even happen in 2016,” said Arnold.
Both advisors say the drop in the market is an opportunity to buy stocks at a much cheaper rate.
“The savvy investor will increase their contributions,” said Schwandt.
By no means is this day a good day for investments, but they remind us about what happened in 2008 — we’ve seen a lot worse.
“That was almost financial Armageddon and here we are,” he said.