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24 Jun 2016

Brexit

The Brexit vote to leave the European Union is a clear vote against the political establishment. The UK’s withdrawal process will not be simple, uncontentious nor immediate. However, under the bloc’s governing treaty, it must be completed within two years. 

Monetary and fiscal policy in the UK and EU is expected to remain highly accommodative to limit the economic fallout, with interest rates staying low or declining further.
  
Foord’s local and international portfolios will not be immune from the near-term downside volatility, despite the emphasis on quality businesses and conservative portfolio construction. However, longer term, the Brexit vote will have very little effect on the forward earnings of the businesses in our portfolios.

Volatile markets are the ideal time to accumulate quality businesses and position portfolios for the next up-cycle. All of Foord’s portfolios have relatively significant cash holdings, which may now be judiciously applied to accumulate quality businesses at lower prices, a scenario for which we have waited patiently.

Investors should take special care not to react imprudently by selling into declining markets.

Insights

07 Oct 2021

Foord Turns 40

Foord opened its doors for business on 1 October 1981 in Market House, Greenmarket Square. Then known as Foord & Meintjes, founders Dave Foord and Liston Meintjes were joined by receptionist Loretta Macleod (retired…

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07 Oct 2021

Markets in a nutshell — September 2021

Another eventful month in global markets, another modicum of time in the stewardship of investments. This month Foord celebrates 40 years in business and we thank all our investors for their loyalty over the years.…

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