The results of this research by Prudential are interesting, showing that most financial advisers believe Brexit implications pose a threat to five year investment returns.
85% of financial advisers had this as a concern.
By comparison, 66% are worried about high market valuations leading to falls, 63% about delivering income for clients, and 55% about low long-term interest rates.
Prudential found that six out of ten advisers think there will be a medium-term market correction.
It is of course pretty much a given that we'll experience a market correction in the medium-term.
Market cycles tend to work like this; equity valuations rise, corrections occur, and markets (usually) rise again. We are in fact long overdue a market correction at the moment.
However, placing too much belief in the negative consequences of Brexit could prove damaging for investors, who could miss out on further market growth.
Kames Capital CIO Stephen Jones has warned today that, “The biggest risk right now is that investors over-worry about disruptive events or financial crises that are unlikely to happen and play it too safe in their asset allocation."
“The triggering of Article 50 will provide some certainty for financial planning but will continue to highlight the need for solutions and advice which can support individuals in achieving their investment goals in the short-to-medium term.”