Savvy investors will be capitalising on the post-Brexit referendum volatility in global financial markets – whatever the outcome, affirms the boss of one of the world’s largest independent financial advisory organisations.
The observation from Nigel Green, the founder and chief executive of deVere Group, which has more than $10bn under advice, comes as the latest polls show that the vote on 23rd June will be closer than most experts had predicted even several weeks ago.
Mr Green says: “Naturally, global financial markets fluctuate in response to events such as referendums, general elections, and other major geopolitical situations, both in the run-up and afterwards.
“But with the EU referendum being so close and therefore so unpredictable, and with its outcome having such a far-reaching and long-term impact, it is likely that the markets will react perhaps more than they would in other circumstances.
“It can be expected that investors will be capitalising on the post-Brexit referendum volatility in global financial markets – whatever the outcome.”
He continues: “They will be poised to take advantage of the anticipated fluctuations.
“Whilst some people are put-off investing because of volatility, many of the most successful investors welcome it. This is because profitable opportunities are found where there are fluctuations.
“Fluctuations can cause panic-selling and mis-pricing. High quality equities can then, for example, become cheaper, meaning investors can top up their portfolios and/or take advantage of lower entry points. This all, in turn, means greater potential returns.
“A recent instance of this scenario would be oil. Oil prices are now up around 70 per cent since the beginning of the year.”
The deVere CEO goes on to say: “By their very nature, all markets are subject to volatility. A well-diversified portfolio and a good fund manager will help investors capitalise on the opportunities that volatility brings and sidestep potential risks as and when they are presented.”
Mr Green concludes: “However the UK decides to vote on 23rd June, and whatever the economic repercussions for Britain’s, Europe’s and the global economies, savvy investors will find ways to profit as the world readjusts to a post-Brexit referendum reality.”