How the ‘Brexit’ decision affects U.S. finances

Finance experts say keep calm and carefully monitor your finances

American flags fly at the New York Stock Exchange on Wall Street, Monday, July 6, 2015. (AP Photo/Mark Lennihan)

PORTLAND, Ore. (KOIN) — Uncertainty abroad is leading to a sharp fall in the stock market here at home.

It was the worst trading day in 10 months. The S&P 500 losing all the year’s gains less than 24 hours after the “Brexit” decision.

“The overall aspect of the UK in this type of situation — we don’t even know what it will look like, let alone how damaging it will be,” said President and CEO of MGK Capital Advisors Mark Gaskill.

“The market panics. Turmoil,” Gaskill said. “You start seeing the market rolling down. People start liquidating their mutual funds that’s probably one of the biggest detriments to the market.”

The overall message from U.S. investors is while the “Brexit” decision does have an impact on our market, this is not the same as the “Great Recession.”

“We’re not talking about an ’08 global meltdown situation,” Gaskill said. “The repercussions of this rippling across to all the other countries is really pretty slim.”

According to Gaskill, that’s because the UK will still be trading with counties in the European Union and it could take up to 2 years for them to fully cut ties.

However, the British pound is crashing to historic lows, leading to a stronger U.S. dollar. So if there’s a time to travel to London, it’s now.

“Number one the airfares have gone down, number 2 Europe is still Europe in the EU and in the short term, you’re going to get a benefit on the pound because of the increase in the value of the dollar,” Gaskill said.

It remains to be seen just how deep our pockets will be hit, but finance experts say to just stay calm and carefully monitor your finances.

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