Buying Opportunities in Brexit Turmoil

THE WEEK: The sharp drop in share prices may be overdone in parts of the market and investors should hold their nerve - and be on the look out for bargains

Rodney Hobson 24 June, 2016 | 10:47AM
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I feel I should eat the hat that Paddy Ashdown famously promised to consume after the general election. Although I voted for Brexit, I was never in any doubt that the UK would vote to stay in. A majority of four percentage points for leaving is a real shock.

There are few certainties in investing and I still believe that I was right to stay fully invested in shares ahead of the vote. You have to go with what looks most likely and be prepared to stand the knocks. Over time, shares deliver in a way that no other investment can.

The FTSE 100 opened 8% down after the referendum result, which was actually the least we could have hoped for in the circumstances. Investors should hold their nerve. The fall in share prices inevitably opened up buying opportunities that some courageous investors immediately exploited.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Naked Wines PLC748.00 GBX-0.53
Sainsbury (J) PLC295.90 GBX1.16Rating
Tesco PLC261.65 GBX1.73Rating

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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