The post-"Brexit" panic seems to have fizzled out almost as quickly
as it came on: global stock markets are now higher than the day
before the UK voted to leave the European Union.1
In our last letter, sent the day after the Brexit vote, we discussed
the futility of trying to time markets based on economic or
political events. The behavior of the markets over these last two
weeks — a steep decline on a geopolitical news event, followed
almost immediately by a full recovery — could hardly have provided
better support for this view.
It's entirely possible (though far from certain!) there will be more
Brexit-related market shocks to come. If there are, we will act as
we did during this most recent episode: staying focused on the
long-term value of what we own, and trying to take advantage of the
opportunities afforded by market panics and volatility.
With that said, here are some brief thoughts on Brexit's impact. (read more)