Note from the Publisher: The following piece published by FintekNews friend Dara Albright outlnes her perspective of the potential market fallout from Brexit and her suggestions – from several different perspectives – on the best places to invest in the future, inclusive of several different fintech-based categories.
“On Friday June 24, 2016 I awoke to plummeting Dow futures and cries of “The British are leaving! The British are leaving!”
The mayhem can be pinned down to just one word, “Brexit”.
For those who tune out political posts on Facebook or have been too absorbed in packing camp trunks to watch the news, Brexit is not the first and arguably the most important meal of the day. According to my Facebook feed, Brexit is either a cataclysmic event that will lead to global financial ruin, a game that bigoted old people play when they are not stealing batteries or a British vote for sovereignty.
However it is defined, the mere mention of the term, Brexit, immediately sent stocks around the world into a tailspin. It made no difference that a company was domiciled on the other side of the planet or that it had no exposure whatsoever to the U.K. Not even record earnings were enough to prevent a company’s share price from falling in the wake of Brexit.
According to Worthy Financial, a rising peer investment app that will redefine how Americans – especially millennials – save for retirement, U.S. retirement accounts suffered an average loss of $3,305 on that fateful Friday alone. With the average retirement savings of all U.S. families at only $95,776 and median U.S. retirement balances for all U.S. working households at a paltry $3,000, the U.S. economy is simply unable to continue to withstand one day losses of such magnitude.”