Brexit: What It Means For You


On June 23, citizens of the United Kingdom voted to leave the European Union. While there has been much speculation leading up to and since the vote, many of the longer-term implications of the referendum remain unclear, as the process for negotiating what a UK exit may look like are just beginning. The UK will have up to two years to negotiate a withdrawal, during which time it remains subject to EU treaties and laws.

I wanted to reassure you that High Five is always monitoring market events, especially the impact such events may have on current client’s portfolios. We consider the implications of all new information as it comes to light. Our investment philosophy and process have withstood many trying times and we remain committed to our approach which is that the market is efficient and fairly priced and while the market fluctuates, the best approach is to allocate and diversify assets over broad assets classes consistent with your risk tolerance.

There may be some fluctuations in the market during the coming days and weeks as individuals try to “time” when is the best time to get out of the market and when is the best time to get back in; should we buy bonds or equities, etc. Long-term investors recognize that risks and uncertainty are ever present in markets. A drop in prices is generally due to lower expectations of cash flows, higher discount rates, or both. In some cases, a drop is also due to investors demanding liquidity. In the current situation, some investors and economists may expect lower cash flows due to possible trade barriers that may not be implemented. Higher discount rates may be occurring due to uncertainty about changes in the economic landscape and regulations. We have seen markets increase discount rates in times of uncertainty before, resulting in lower prices and increased expected returns. However, it is difficult to know when good outcomes will materialize in the future. By attempting to time the right moment to invest or redeem, one risks not enjoying the potential benefits of such materializations. Many of those who exit the markets miss the recoveries. To reiterate, we believe that investors who remain in well-diversified portfolios are rewarded over time.

In summary, as a fiduciary, we’re watching what happens and if and when it appears that changes need to be made, we will keep you informed.

Until then, keep cool and enjoy the summer.

Check out our video to see how we help our clients.

If you’d like to learn more about how High Five Financial can help you achieve your goals, please call me at 847-628-9777. Or email us at Visit our website at

Jose Cuevas
President & CEO
High Five Financial


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