On Thursday, June 23, 2016, British citizens voted to leave the European Union ("EU"), which sent immediate shock waves through global financial markets as British political leaders and economists worldwide speculated on the near and long term impact of the unexpected decision. With the hysteria of media chatter, we want to provide some fundamental perspective on Brexit and our view as to its impact on the markets and your long term goals. What is "Brexit" and why did it happen? The idea of creating a single, common market across Europe began in the aftermath of World War II. A slow effort, but by 1993, a single market was created encompassing 28 countries. Borders were opened and visas for travel and work permits abolished. An important milestone was the development of the European Monetary Union in 1999 which, by 2002, had converted 19 of the 28 countries (defined as the "eurozone") over to a single currency, the euro. Britain, while a member country of the EU, instead chose to not participate in the eurozone, and preserved the use of its home currency, the pound. While Britain, like most of the other EU countries, benefited economically from a common market, Britain has never...
