“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.

About your author

</p>
<p><center>Team Wealth Academy</center>

Team Wealth Academy

Wealth Educators

Team Wealth Academy is a dynamic team who strongly believes in promoting financial literacy to everyone. Founded in 2004, the team has successfully organized the widely acclaimed Wealth Academy™ Program regularly for more than a decade now.

Disclaimer

Any content in this presentation should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Adam Khoo Learning Technologies Group Pte Ltd (AKLTG) and its associated trainers are not liable for any losses incurred from your investment activities. Past investment performance is not necessarily indicative of future performance, even if the same strategies are adopted. All forms of investments carry risks. Such activities may not be suitable for everyone. This course presentation is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. The publishers of Adam Khoo and AKLTG are not brokers, dealers or registered investment advisors and do not attempt or intend to influence the purchase or sale of any security. AKLTG does not guarantee the accuracy or completeness of the information displayed. This is shared purely for educational purposes only. 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

Other articles you might be interested:

Stock Market Cycles

We will be talking about how to use market cycles to achieve profitable investing today. The market goes through different phases and different strategies perform well under different market conditions. The market goes through 4 cycles: 1)…

Different Strategies for Different Stocks

Have you ever wondered what is the best strategy to use when you enter the stock market? Short or long term? Buy-and-Hold and dollar cost average or trend follow? Use only fundamental analysis or technical analysis? When is the best…

Profit from Stock Market Trend Following

Let's take a look at how you can profit from trend following the index. I always talk about how indices always go up in the long term.  If you look at the chart below, although it goes through ups and downs in the short and medium-term cycles,…

The Power of Stock Market Trends

In this post, we will be looking at the power of stock price trends to profit immensely. If you look at prices on a stock chart, it may seem like it is moving randomly but they often exhibit repeatable patterns that can be exploited. When…

The Bull Market in Stocks Continue! What's Next? (Part 2 of 2)

This is part two of the bull market continues. If you haven’t read the first part of this post, click here to read it and come back to continue. To find out where we're going from here, let's consult the charts and look the technicalities Here,…

The Bull Market in Stocks Continue! What's Next? (Part 1 of 2)

As all of you know, the bull market rampages on as we have foreseen, proving the naysayers and the purveyors of doom so wrong. Since the hit of the low last week, stock market is up 32% in the last two weeks, and in fact it's made back more…

The Bull Market in Stocks is Back!

I have got pretty tragic news on 10th April 2020. There’s been the death with someone that we all know really well. And it is the death of the bear. The bear market is officially dead. But the good news is the bull market is back. So…

4 Keys to Profitable Investing

In this post, I will be talking about the 4 Keys to Profitable Investing. If you want to achieve consistent profits while investing in the stock market, you must read this. What To Buy – 20% of success We only want to buy very good…

Exchange Traded Funds (ETF) - The Simplest Way to Invest

Do you think it’s possible to achieve 10-12% annual returns from the stock market with very little effort? Most people say no, they don’t think it’s possible. If you look at most retail investors in Singapore, the average retail…