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How to Invest for Brexit

16/06/2016 11:11 | Updated 16 June 2016

How should you invest for Brexit? Should you buy, sell or wait to see what happens?

The truth is, as Martin Lewis said, "no one knows." Whether Britain will thrive or dive outside of the EU is unpredictable.

If you're not careful, you could lose a lot of money. The British market is tanking and the pound is sliding. People are worried. What should you do?

There's something you need to know: Selling now, at the bottom of the market, might be a bad idea. Why? You may lose all the gains you have made since January last year (2015).

Selling from fear is exactly what professional investors take advantage of. In fact, they're already circling like vultures:

"If the reaction is to panic and sell-off, that will be interesting for us," said a fund manager at Orbis, a $25bn fund house.

Don't let others make money from your panic. Think long-term instead.

In Money's Big Secret, the #1 Amazon best seller I wrote, I looked at 2,000 years of dynastic family and banking history to see what the wealthy do to stay rich. Do you know what the answer was?

Diversify, diversify, diversify: many countries, many companies, many asset classes.

The key is not to sell any specific thing, nor to buy any specific thing. Rather, to maintain a well diversified position. Put your money in many countries, sectors, and asset classes such as Government bonds.

This way, if one thing does badly and another does well, you're covered.

Nutmeg.com and the Vanguard LifeStrategy funds can do this for you automatically. They split your money into thousands of pots which makes you diversified, fast.

They also have very low fees and when you're playing the long-term game, this matters. It's not a way to get rich quick, nor to make money off Brexit. Tactics like that come at the cost of risk. Rather, this is about maintaining your wealth.

When you look back at the graph in 20 years time you won't even be able to see the Brexit blip. It, and probably the politicians gunning for it, will be consigned to history. Don't let fear dictate. Diversify.

Tom Church is author of #1 Amazon Best Seller, Money's Big Secret and life hacking blogger.

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