Global equity markets dropped dramatically because of Brexit but then returned to record highs. Advisors were unmoved.
According to a recent survey from Louisville-based Jefferson National, 85 percent of fee-based advisors did not revise their investing strategy in response to the Brexit referendum.
Even if the British parliament decides to invoke Article 50 and officially leave the European Union, 87 percent of advisors would stay pat with their current investing strategy, according to the survey.
A plurality of respondents, 43 percent, agreed with Britain’s decision to leave the EU.
In Jefferson National’s survey, half of the advisors said that their clients were unconcerned about the impact of Brexit, mirroring another recent study from Chicago-based Spectrem Group that found investor confidence remained steady in the weeks following the vote.
Nearly two-thirds of advisors, 64 percent, reported that Brexit will have the most impact on the financial services sector of the U.S. economy, with minimal impact on other sectors.
When asked if they think other countries will leave the EU, advisors said that the most likely candidates were Italy, 43 percent; France, 41 percent; Spain, 29 percent; and Germany, 29 percent.
Jefferson National surveyed 370 RIAs and fee-based advisors between July 14 and July 22, 2016.
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