“Brexit” – Crisis Or Opportunity?
Lately, the “Brexit” saga has dominated most of the news headlines ever since the U.K voted to leave the European Union. Interestingly enough, after the results were announced, a handful of voters had regretted their initial decision to vote to leave the EU.
Nonetheless, the consequences of their decision have been felt globally. Shortly after the results were announced, the pound for example, declined more than 10% against the U.S dollar, a level which has not been seen since 1985. Major stock markets worldwide have also reacted negatively. The U.S S&P 500 Index for example, plunged 3.5% within a day after voting results were out.
On the other hand, the prices of some investment instruments traditionally regarded as investment “safe haven” have spiked up as some investors rushed to fall back on these “safety nets”. The price of gold for example have spiked up 4.9% in day. Similarly, in the currency markets, traders also scramble to purchase the yen, causing the yen to surge by as much as 7.12% against the U.S dollar at one point in time.
Given that the United Kingdom’s economy is the fifth largest in the world, would the decision to leave the EU, trigger a string of events that might potentially pull the global economy back into recession? Likewise, could this be the beginning of yet another global financial crisis that could potentially threaten the livelihoods of most people?
Crisis Or Opportunity – It Is A Matter Of Perspective
At Wealth Academy, we believed that being able to manage one’s wealth and invest successfully has less to do with these external market events and more to do with how you respond constructively to these external events.
For example, one way, albeit a less empowering way of viewing an impending crisis, is to feel gloomy about these events and think that we are powerless to do anything about it.
Alternatively, we could respond to a crisis in a more empowering and constructive way by acknowledging that even though we can’t control these events on a global level, we can control what can do on a personal level to prepare to deal with and possibly benefit from the crisis.
For instance, in order to prepare for the possibility of a retrenchment during a global financial crisis, we could actively upgrade our skills to make ourselves relevant and look for ways to generate another source of income.
At the same time, we can also respond constructively to a pending stock-market crisis by saving up and learning whatever we can about investing successfully. In that way, when a crisis were to occur, we can position ourselves to take advantage of the stock market crisis by spotting and buying quality companies at low prices and subsequently enjoying the profits when the market recovers.
Hopefully, this short post will inspire you to stay positive and take constructive action to move towards your financial goals, amid a string of “depressing” news in the media lately.
If you would like to take a step further and learn how you can invest in the stock market successfully, then we would like to invite you down for a 3-hour, highly educational, Wealth Academy Introductory workshop, where renowned wealth coach and professional stocks investor, Adam Khoo will reveal the strategies and mindsets needed to invest in the stock market successfully.