“Stick with your investment plan. Corrections happen. Don’t make rash moves,” Coté said.
But make no mistake. It will take some time for the markets to fully understand the impact of the Brexit vote. Volatility is back with a vengeance. (And a capital V for both those words!)
Zhiwei Ren, managing director and portfolio manager at Penn Mutual Asset Management, said the Fed probably won’t raise interest rates for the rest of the year as a result of this.
“The market was not prepared for this at all,” he said. “This is terrible for banks. They are going to remain a value trap for a while. It’s going to remain a very bad environment for them.”