Today is the day that UK voters decide on whether to remain in the EU or leave. So far the polls are showing the UK remains in the EU. For most of this month polls favored the Brexit vote, suggesting a vote in favor of the UK leaving the EU. This polling created volatility in global markets, where stocks, bonds, commodities and currencies all showed increased uncertainty. The pound and European equities were hardest hit, along with increased volatility across the capital markets. I noted that the volatility created by the polls showing a Brexit vote was a buying opportunity. In the weeks leading up to the vote, we focused on several themes to add value to our portfolios. We used some of our cash on hand to selectively purchase some stocks that finally provided nice entry points. We were also able to use our fundamental and technical analysis to trade oil as we saw oil prices recently peak for the year.
For about a year, ever since this topic started making its way into the press, it has been my position that the UK does NOT leave the EU. We made sure that our portfolios were properly positioned and with today’s move up, our recent market calls have been correct. Please reach out to our latest market views and stock selections and to sign up for our newsletter.