The world continues to watch closely as the consequences of Brexit—Britain’s recent decision to separate from the European Union—unfolds. Financial markets in the United Kingdom (U.K.) are beginning to feel the impact of the decision, and many experts believe the country’s economy could experience a recession.
While it’s tempting to think that financial woes will stay on one side of the Atlantic, it’s important to remember that such shifts in the global economy can certainly have a ripple effect in our own economy. This market volatility could have an impact on your personal budget and your retirement. That’s why it’s important to keep a balanced retirement portfolio, combining some riskier products with more conservative savings options such as Fixed Indexed Annuities (FIAs), to help guard against market swings and market volatility like those stemming from Brexit.
To learn more about the effects Brexit on the global economy and could have on your financial future, check out these articles:
1. Reuters: Tracking Brexit – how referendum shock is affecting UK economy
“Britain looks set for an economic slowdown and possibly a recession after voters decided to leave the European Union in a referendum on June 23.”
2. CNBC: Brexit could bring a little discussed drag on the US economy
“While the effect on U.S. stocks has been fairly muted so far, with the S&P 500 down only roughly 1 percent since the vote, we can already see broader effects on the global economy.”
3. The Wall Street Journal: U.S. Economy Looks Likely to Weather ‘Brexit’ Storm
“The U.K.’s decision to exit the European Union may rock the overall U.S. economy in coming months. But it isn’t likely to sink it. Once the initial market turmoil abates, the “Brexit” decision will become the latest in a long list of headwinds contributing to the American economy’s sluggish growth.”
4. Time: Why Brexit Really Is a Big Deal for the U.S. Economy
“Politicians and technocrats of all stripes are trying to reassure Americans that Britain’s vote last week to leave the EU won’t affect them economically. They are wrong.”
5. US. News & World Report: The U.S. Economy: A Post-Brexit Assessment
“Near-zero GDP growth. Strong dollar. Weak exports. Factory recession. Federal Reserve hesitancy. Low inflation and low interest rates. Solid consumer spending. Accelerating construction. Rising home sales. China turning the corner? These keywords were seen frequently in news stories prior to the world-startling June 24 Brexit vote.”