Following Brexit, I expect that my stocks and shares Isas will be badly hit by the unstable markets, will lose considerable value and take many years to recover, if at all. Is it time to pull out my money and invest it elsewhere? I am risk-averse when it comes to my investments. In other words, to separate extreme reactions that follow unexpected dramatic events, from the useful information about prospects for different types of assets in the future.

There was no doubt that the noise following the Brexit vote was loud. Markets plunged in the immediate aftermath, sparked by surprise at the result and fear about uncertain economic consequences. Yet the picture that is emerging almost three weeks later is much more complex and by no means clear cut.

Deciding what to do with your investments after a market shock depends on a number of factors: Shares in big business — with some exceptions, most notably banks and housebuilders — recovered lost value very quickly. This is partly down to the weaker pound. The FTSE index, which is largely made up of global corporations that happen to be listed on the London Stock Exchange, now sits higher than it did before the vote.

Because these corporate giants earn so much of their revenue overseas, in other currencies, such revenues are boosted when converted into sterling — so some traders and investors are now viewing their prospects more favourably, pushing up share prices.

10 crucial Isa questions answered - Telegraph

To take one example, shares in the international pharmaceuticals behemoth GlaxoSmithKline went up by almost 15 per cent between 10 June and 8 July — and most of these gains came after the referendum, which barely caused a dent in the upward trajectory. So, if you have shares in big, international companies, or funds that invest in portfolios of them, you might be pleasantly surprised when you check your portfolio, assuming you are not overly exposed to banks and housebuilders.

The FTSE index, which is made up of the next-largest companies after the top , is much less global in nature. Between 10 June and 8 July, the index fell more than 5 per cent, although it has recovered somewhat from its lows after the vote. Any sensibly diversified portfolio should also include other assets such as government bonds, known as gilts. Despite fears about the prospects for the UK economy, gilt prices have gone up as some investors pile in for relative safety.

Stocks & shares ISAs: find the cheapest platform - MSE

When prices go up, it means that yields go down, but plenty of investors are prepared to accept ultra-low returns for the knowledge that the UK government is extremely unlikely to default because it can always put up taxes or print money in an emergency.

So if you already hold gilts, or gilt funds, you will find that they, too, have gone up in value since the vote. There is one sector where the consequences of the vote have been unambiguously negative, at least so far. Diverse portfolios are likely to include some property exposure — and the easiest way to get it is through commercial property funds, which tend to invest in things like office blocks and retail outlets.

Should I sell my stocks and shares ISAs? ? | Yahoo Answers

This has happened since the referendum, and consequently many of the biggest funds have put a temporary ban on withdrawals. Doing this gives fund managers some time to sell property, but it also means that commercial property values are likely to fall — in other words, the referendum has turned a sellers market into a buyers market.

Interest rates on cash remain derisory, and could get even lower, but if you prefer security to jeopardy, investing in cash assets remains the option for you. Those not happy taking investment risk should have a bias towards gilts and safer shares, with investments spread internationally.

If you had a plan of this kind before the vote, stick with it, unless volatility has caused you to realise that you were taking more risk than you are comfortable with. That's why our new email newsletter will deliver a mobile-friendly snapshot of inews.

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We must help them now Opinion. We are still not listening to the Grenfell survivors Opinion. My partner is a firefighter - they don't want to be thanked by May Comment. After Brexit, should I pull money from my stocks and shares Isa? Harry Rose 11 months Wednesday July 13th Dear Harry, Following Brexit, I expect that my stocks and shares Isas will be badly hit by the unstable markets, will lose considerable value and take many years to recover, if at all.

Name and address supplied Harry says: Shares in large companies Shares in big business — with some exceptions, most notably banks and housebuilders — recovered lost value very quickly. Shares in UK banks, such as RBS above , have dropped since the EU vote.

Hargreaves Lansdown To take one example, shares in the international pharmaceuticals behemoth GlaxoSmithKline went up by almost 15 per cent between 10 June and 8 July — and most of these gains came after the referendum, which barely caused a dent in the upward trajectory.

Government bonds Any sensibly diversified portfolio should also include other assets such as government bonds, known as gilts. Gilt yields have plummeted since the recession, partly due to record low interest rates Source: So, what should you do? Get daily news updates Subscribe to the newsletter Sign up today.

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