Now is a confusing time for the world. The recent exit of The United Kingdom from the European Union has caused investors to take pause. Brexit has changed the global market in many different ways. The value of the pound, for example, has been fluctuating greatly since the exit initially took place. Canadians, like residents of countries all around the world, are justifiably worried over what these erratic trends might cause. In order to be able to fully grasp the situation, it can be useful to take a look at a few of the fears that are coming up and what it means for future investments.
Fewer Goods
One large concern that keeps coming up in discussions about Brexit surrounds exports. It is predicted that it will be more difficult to receive specific exports from The United Kingdom due to the severed ties with the European Union. The reason for this difficulty is because the EU has a very extensive system of trade that the United Kingdom was once able to benefit from. By being removed from the equation, the UK will find it difficult to have access to the same level of resources that were available by way of the European Commission. This lack of access to exports, in turn, can hurt the finances of anyone who has made investments in companies that are based out of The United Kingdom. Pulling out investments can also be a sign of paranoia, causing a global uprising and market instability. It might seem frightening to think about, but there are ways to safely make the right moves with your money. If you have investments in the companies that are based out of the UK and you have not yet made any calls regarding their future, it might be a good idea to speak with a financial advisor and get the professional advice that you might need.
Educate Yourself
Most people across the planet have already nailed down most of the details on Brexit. The constant international coverage made sure to fill the airwaves, television screens and internet media outlets throughout the duration of the situation. Still, you might not know exactly how your finances can be impacted by these recent events. There is a wealth of resources being put out by financial institutions lately. Check out 4 Ways Brexit could affect Canadians, a high-level overview of the Brexit impact on Canada. Similarly, you are able to find helpful explanations from Fisher Investments Canada on Brexit recap on how Brexit may affect investments. The more you know, the easier it will be for you to remain calm as you try to navigate the complicated landscape of the current state of affairs.
Value of the Dollar
There has also been a great deal of talk over whether or not the dollar of the United States will go up significantly in the time following Brexit. If it does, it could mean that Canadians will have a more difficult time enjoying the exports of America. For a long time now, Canadians have been able to get affordable products from the States and enjoy leisurely vacations on an affordable budget during the summer. With the potential rise in power of the dollar, many Canadians are worried about the likelihood of being able to do this for much longer. Not only can a rise in the dollar harm the ability to inexpensively enjoy America, it can also add fuel to the fire and complicate Canada’s own economy. The United Kingdom is quite far away, geographically, but the economic climate of the world has been dramatically altered by their recent decision to exit. As such, you can expect Canada’s economy to change somewhat, but the biggest worry will definitely be in regards to The United States.
There are many different points of concern that need to be addressed when thinking about Brexit and what it means for the world. If you are concerned with your investments and the future of your finances, it is a good idea to take the right action. Speak with a financial advisor to receive the advice that you might require. You will learn exactly what to do moving forward, and you will be able to put your portfolio in the hands of professionals who have a profound understanding of the market. Until then, it is a great idea to continue educating yourself about the intricacies of the current state of affairs across the planet and what it might mean for your financial future.