There’s lots and doom and gloom out there about Britain leaving the EU and its impact on stocks. Ignore most of it if you’re heavily invested in US rather than foreign shares, which could get roiled as this thing sorts itself out.
Lets be clear, Britain is a great country with a great history but in terms of our massive economy it’s a pimple on the proverbial elephant’s rear end. In other words, its just not that big of a deal to us. Yes, I know the markets sold off right after the vote, but that’s mainly because it was such a surprise (popular opinion was that the UK would stay in the EU) and traders hate surprises.
Bottom line: US stocks will trade based on US fundamentals (i.e., corporate earnings, the economy, etc.) and, of course, whether the Fed will continue to keep interest rates low. At least for now those issues are murky at best.
My advice: Be cautious about the markets (muni bonds are a good place to park cash since they’re triple-tax free) but be cautious because of stuff that’s happening here rather than over there.
Charles Gasparino is a Senior Correspondent at Fox Business Network and a columnist for Men’s Fitness. Follow him on Twitter.
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