As you’re no doubt aware, Britain’s inglorious departure from the European Union has plunged the global economy into a mini-meltdown. Besides the obvious immediate impact on the Sterling, global markets are down across the board for one main reason: uncertainty.
If there’s one thing markets don’t react well to, it’s the volatility that comes along with a previously unprecedented event. Since there is nothing to compare Brexit to, and therefore no real idea of the long-term repercussions of this move, investors are reacting reflexively and trying to cut their losses.
However, as we’ll see in this blog post, panic is not the right way to deal with this recent economic upheaval. So, how does a smart investor react to Brexit?
Real Estate: A Tangible Asset
Some of the oldest investing wisdom in the book is that when things get scary, investors should go back to the basics; namely, gold. There is a certain amount of calmness that comes from investing in gold, because it is a timeless commodity that exists in finite quantities and will seemingly always be in demand. When currencies and indexes drop, gold often rises.
If we extend that line of thinking in a creative way, it becomes apparent that real estate can function in a similar way to “hedge” against the volatility of the stock market — even in times of plenty, but especially after turmoil such as Brexit.
Real estate is a tangible asset that provides incredible value and, historically, solid returns for those who choose to invest in it.
What Happened to My 401(k)?
If, like many other Americans, you have looked at your 401(k) in the days following Brexit and found that you’ve lost a substantial amount of money, don’t panic. Instead, consider diverting your usual IRA contributions into a more secured investment: real estate. While global indexes sort themselves out, consider thinking outside the box and channeling some of your usual investment funds to a more predictable commodity.
Partner With CashNVestors
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If you are interested in partnering with CashNVestors and putting your money to work in a stable industry during the post-Brexit aftermath, contact us today to speak with a friendly member of our team and find out more!