BE CAREFUL, THE MARKETS WILL BE SKITTISH FOR AWHILE!

As I write this (8:30 AM EDT, June 27), the US stock market is expected to open with the Dow Jones Industrial Average projected to open down by approximately 180 points. Asian markets have already closed up, perhaps somewhat on a bounce from Friday’s devastation. European markets are already open, down roughly two percent on the majors (FTSE, DAX and CAC). But anything can, and will, change without reason!

Currencies can be a bit harder to follow, at least for the first-time observer, since their fluctuations are not measured vis-a-vis any previous prices, but versus other currencies.
Jut keep in mind that as a country’s currency strengthens, its exports become more expensive—and less competitive—in the global trade markets.

Over the weekend, I would not have wanted to even try guessing which way the stock market would open. Asia-Pacific stock exchanges (12 to 14 hours ahead of EDT, and 7 to 9 ahead of GMT) were the first to set the tone for the week going forward. But, that might change by tomorrow. London and European markets are directly involved—albeit on opposite sides— of the Brexit. They, however, will feel the lasting effects as they evolve.

The US is somewhat protected from global trade fluctuations since much of our GDP—the total of goods and services produced—are consumed domestically, nog subject to currency fluctuations. At the same time, however, it is important to remember that when global markets move, in either direction, that will impact us, as well.

Uncertainty will continue to abound. If you bailed-out, in part or in total, and might be considering getting back in the market, do so gradually. Movements will change unexpectedly for the near future—up one day, and down the next. So, protect your asset base; because, with any market trend, there are going to be short-term reversals. So, don’t get caught in a sudden lurch, which may very well be just a hiccup, and in either direction.

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