Wednesday, June 29, 2016

Coffee Break: Brexit Special

By Jim Parker, Vice President, DFA Australia Limited

By virtue of necessity, the media works on a day-to-day horizon when covering financial markets. For most investors, though, the more important horizon is measured in a matter of years.

Referendums like “Brexit”, elections and geopolitical events can look momentous if you assess them via the short-term market reaction. But taking a step back from the noise can also provide a much needed perspective.
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When markets fell heavily after the recent Brexit vote in the UK, one US advisor was awoken by a client shouting down the phone that the Dow was down 500 points. The advisor’s response is a classic case of the benefit of not fixating on daily moves in the indices.
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Day-to-day market moves may be interesting, but they may not be so important if your horizon is in years. http://nyti.ms/28ZEy9a

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Brexit, China, oil, elections, negative interest rates….there seem to be plenty of news headlines to lose sleep over at the moment. So what do you do? As it turns out, the same rules of thumb we use to improve our own sleeping habits can be applied to our investment portfolios.
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With all the worrying news in the world, is your portfolio getting enough sleep? http://bit.ly/28Z6mJ0

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When markets are volatile, there can be an overwhelming urge to “do something”, but what exactly? There are as many opinions out there as there are portfolios. But what if you just took a deep breath and didn’t do a thing? This writer provides eight useful points of perspective.
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When markets are rocky, the immediate impulse is to “do something”. But there’s a better response. http://nyti.ms/293tHOA