The Brexit decision: A balanced view

By Mattioli Woods

01 Jul 2016

In the immediate aftermath of the vote to leave the EU, there continues to be much emotion both for and against the result and with the vote being so close, there is sharp contrast between those joyous with an exit and those desperate for a reverse decision.

Ultimately, the decision has now been made and many commentators are calling for all parties, regardless of their persuasion, to come together and make a positive contribution.

We will try to cut through the “noise” of the event and pick out some key factors to be considered by investors, pensioners and everyone taking an interest.

As expected, investment markets opened up sharply lower on the morning of the result (Friday 24th June) but timely interventions by a number of a central banks sought to reassure the markets and prevent a major devaluation. Indeed, by close of play on Friday afternoon (24th June) markets had recovered somewhat and the reality is that many markets have already been lower this year than their current levels.

It should also be remembered that many equity markets enjoyed a relief rally before the result was even known and much of the early volatility seen sought to remove short term ‘false’ gains.

A further reassuring announcement from the hither-to unseen chancellor, also provided some element of comfort that policymakers stand ready to take action to mitigate the loss of confidence.

That being said, we expect further volatility and weakness and the much clichéd “markets do not like uncertainty” has never been truer, with current uncertainty levels being higher than at any other time in recent political history.

Considerations for our investment team include the future for the EU, the potential for action from the Bank of England to “protect” Sterling, the equal possibility that inflation may rise as a result of increased base costs, other central bank action, lower GDP as the continuing (increased) uncertainty reduces business investment and consumer spending, the possibility of a political vacuum in the UK and Europe, and indeed issues in the US, China and beyond.

A recent study by Schroders and Financial Express demonstrates that whilst ten days after the biggest one day falls in the FTSE All-Share index (driven, of course, by the behemoths of the FTSE 100), markets were usually even further off, one year later there had invariably been a significant recovery to an average c. 16 per cent positive return. We always felt that the long term potential upside of a vote to remain, given other economic and market concerns globally, was limited.

Our strategic financial planning process is designed to ensure that only long term ‘growth’ funds are designated for investment and that ‘income’ and ‘access’ needs are accounted for separately and securely. In this manner, we seek to ensure that ‘growth’ funds retain an automatic long term horizon and whilst short term volatility is never welcomed, we believe that those with a longer term view could see a potential economic benefit from UK independence.  

Latest news

1

Meet the influencers who have generated £2m sales for one company Helen and Richard Chalu new

Meet the influencers who have generated £2m sales for one company

16 Oct 2025

2

WHN strengthens position in prestigious legal guide Daniel Long

WHN strengthens position in prestigious legal guide

16 Oct 2025

3

Warden appoints new commercial manager to strengthen project delivery and growth Peter Heskine

Warden appoints new commercial manager to strengthen project delivery and growth

16 Oct 2025

4

Stockley's finds its sweet spot Stockley's front view

Stockley's finds its sweet spot

15 Oct 2025

5

Breck to start £15m Blackpool affordable homes and retail development Cropper Road, Blackpool

Breck to start £15m Blackpool affordable homes and retail development

14 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

Lancaster District Business Support Expo
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
29 Oct 2025 - 29 Oct 2025

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

10:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin