By now you have probably heard about Brexit, the successful vote by British citizens to exit the European Union and the immediate reaction of the global financial markets.

The near-term impact of Brexit is still unknown because there are many variables, but in the long run, we are confident about the future of Britain and Europe. Though there are many examples throughout history that lead many to believe that “this time will be different”, what has always been true is that countries and economies, especially developed ones, continue to move forward despite short-term setbacks. Europe has endured two world wars and yet it has continued to prosper, and London remains a leading world financial hub. Nevertheless, ACap will continue to closely monitor the developing situation, its impact on the markets, and keep you updated.

Since mid 2015, we have been reducing portfolio exposure to international markets, while at the same time increasing cash allocations in your accounts to take advantage of such market declines. We are not attempting to time or predict the future direction of markets since no one can accurately and consistently do so. We are, however, viewing this as an opportunity to apply the wisdom of Warren Buffet who said, “be fearful when others are greedy and greedy when others are fearful”, to buy good long-term assets at lower prices. It is important to note that all of our client portfolios are well diversified and none of our clients have concentrated positions in any one sector.

In the meantime, now is the time to plan your vacation to London and Europe – the Brexit vote has caused the value of the British pound and euro to decline sharply making it much cheaper for Americans to travel to the region.