How will the 'Brexit' affect the U.S. economy? Local financial advisors weigh in

WEST PALM BEACH, Fla. - As far as the markets go, the only thing certain Friday was a sense of uncertainty.

"I think most of us woke up this morning and looked at our stock portfolios and said 'uh oh'," says Lisa Ferrari. "I hope we're strong enough to ride out the storm.

Both Lisa and Leo Desmond are paying close attention to the situation in Britain.

"We live in interesting times, let me say that," Ferrari says.

The so called 'Brexit'  is already impacting American investors.

Leo says he made his move yesterday, before the vote.

"It didn't seem that it was a reality," Leo says. "I started hedging the account, so that I'm actually up today,"

Others are not so fortunate.

Many portfolios and 401ks were hammered, as the markets dropped drastically on Friday.

"Psychologically, it's a reaction - a knee jerk reaction to an event that wasn't expected to happen," says financial advisor Dave Wentley. "You're going to see increased volatility, I suspect you'll see it for the rest of the year."

Wentley says if you did take a hit Friday, don't panic.

"Keep a long term view of your investments,  don't react to something even though it came up so quickly and so violently," he says. "Stay the course, keep a long term perspective, you'll be fine."

What about other aspects of our economy?

Financial advisor Michael Martin says we you could see a price bump in certain goods and services - as America and Britain will have to work out new trade deals over the next few years, as the exit process continues. 

As far as the housing market, it's set to benefit as people move to safer assets after Friday's news.

"We're going to be in a lower interest rate environment for a little while longer," he says. "Mortgages should do better, the housing market should actually benefit to a degree."

For the most part, however, he says the impact won't be widespread in America.

"We are dependent on a global economy to some degree, but I don't think it's going to affect us long term, not at all," Martin says.

 

DISCLAIMER: Michael Martin is an investment adviser representative of, and securities and advisory services are offered through, Madison Avenue Securities, LLC ("MAS") Member FINRA/SIPC and a registered investment advisor.  Insurance services offered through Legacy Advisors, Inc. and Tax and Accounting services offered through Legacy Tax, Inc., both of which are subsidiaries of Legacy Financial Partners, LLC. Legacy Financial Partners, LLC and its subsidiaries are not affiliated entities with Madison Avenue Securities, LLC.

For more on Martin and Legacy Financial Partners, visit http://www.lfpfinancial.com/

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