[Daily Tips] 3 Big Reasons Not to Sweat Brexit Fever

“Brexit.” It’s the first word most of us heard this morning—and you’re not alone if you thought there’d been a global health emergency involving a bad run of English digestive biscuits.

But now we know what "Brexit" means. It’s the politico patois for the news that Britain is exiting the European Union, pronto.

But what does Brexit really mean, for global markets, economics, politics, trade partners?

There’s a lot of excellent coverage of Brexit reactions and implications—on the Web, newspapers, TV, radio—on all those topics.

We’re not going to do that.

What we are going to do is give you the skinny on what it means to us at DailyWorth. That is, what does or could Brexit mean for you? Herewith, we offer you:

DW’s BREXIT PANIC Rx

1) European and US banks are likely going be okay.

It’s worth questioning whether they’re going to teeter over the edge, after the walloping we all took in 2008. But the answer this time around is: probably not.

The reason is that sometimes people do learn their lessons. After the banking disasters 16 years ago, the US and Europe instituted major financial systemic restructuring, ensuring that emergency funds would always be made available in times of major recession.

2) The Brits seem to be on it.

Being able to scare up the necessary cash to keep economies from collapsing is key when, for example, major countries trouble global financial waters.

Many British banks appear to have their, and our, backs. The Bank of England, for example, has immediately promised to make 250 billion pounds available to banks if needed, as well as "substantial liquidity in foreign currency."

3) U.S. banks are actually over-prepared.

The Federal Reserve just recently put the top 33 American banks through a major stress test to see how they’d fare in the case of 2008, part deux. The results?

Well, of course there’d be major losses. But in one of the most important measures, the Fed found that all the U.S.’s biggest banks would be 67 percent over the minimum—even in the worst case scenario.

Your Portfolio: Don't Let Brexit Nix It

As queasy as you may feel and worried about our collective futures, we never recommend selling investments during a downturn. Markets go up and down, but over the course of history, they always go back up again as long as you have time to wait out the recovery.

Keep Calm and Keep Saving.

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