As you have likely heard, the people of the United Kingdom voted to begin the process of exiting the European Union last Thursday. The formal separation may take two years or more to complete, but has created immediate uncertainty about the future of European politics and economics.

Because markets hate uncertainty there has been and will likely continue to be higher volatility in the short-term. However, it is doubtful that this vote puts the long-term viability of companies like Adidas and Reebok, or BP and Shell, or Barclays and ING in danger.

In August of last year the US Stock Market dropped more than 12% from its all-time high over fear of a slowdown in China. The markets began this year with one of the worst starts ever due to the falling price of oil and the prospect of interest rate hikes by the Fed. In both cases markets recovered and the reasons for fear were all but forgotten within a matter of weeks.

We believe Brexit is another example of market overreaction creating a buying opportunity for investors. Warren Buffett famously said, “Be fearful when others are greedy and greedy when others are fearful.” You may see activity in your accounts in the days and weeks ahead as we look to take advantage of this opportunity.

Please don’t hesitate to call with any questions on this or any other topic.

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