The British have spoken: Brits want the United Kingdom to leave the European Union, commonly known as Brexit, and global markets have been rattled since the announcement. In addition to the extreme market volatility, Prime Minister David Cameron announced his resignation; Scotland is making noise that it may revisit its independence, and what’s next. Nobody knows for sure, but the move is expected to have far-reaching global political, social and financial implications. The immediate impact is uncertainty, which translates to market volatility.
The situation is clearly fluid, and it’s unclear where we go from here. In addition to trying to get your arms around the bombardment of news alerts, you make also find yourself pushing the refresh button on your computer, tablet or smartphone and see your portfolio rapidly decreasing in value, which may prompt a call to your financial advisor. An advisor’s recommendation to hold, stay the course, etc. is still investment advice, and you should be aware of the landscape that governs your advisor’s conduct. The advice to hold should certainly lend itself to stricter scrutiny in times such as Brexit.
In January 2016, the Investment Litigation Team authored an article in the Palm Beach Daily News, The Proverbial Hold Recommendation Is it Suitable or is it Legally Actionable. We hope you find the information useful as you try and sort through all of the information and potential impact on your portfolio.
If you have experienced any material losses in your portfolio, we are interested in reviewing these issues in more detail. Contact us today at [email protected] and schedule a free case evaluation. We do not earn a fee unless we obtain a financial recovery for you.