Stock markets across the globe are rocking and rolling after the United Kingdom’s decision to part ways with the European Union, and that can be felt in our pocketbook as in 401ks and other investments take a dive Friday.
Local residents wonder what this will mean for us also in the political arena.
A decision halfway across the world reverberates here at home.
"I was kind-of afraid to hear that as well, just wondering what’s going to happen to the world economy as a result, because we all affect one another in the economic sphere," said La Quinta resident, Debra Savitt.
Stocks came tumbling down here in the United States, the DOW plunging more than 600 points after the United Kingdom’s voters decided to say so long to the European Union.
"I think they’re making a mistake economically. It will penalize them long-term. Obviously the global economy affects us here. I’m a stock investor, so needless to say I’m concerned about what’s going on today, but I think it’s a buying opportunity," said Phil Marinovich of La Quinta.
Professor of finance at Cal State San Bernardino, Jim Estes, agrees it’s an opportunity to buy.
"I just see it as a buying opportunity, it’s not going to be permanent, but if you’re in a 401k and you’re nervous about the market, just sit through it. It’s not going to be anywhere near like 2008, it will come back," said Estes.
The UK is one of our largest trading partners, but overall Estes doesn’t think their vote to leave the EU will hurt the US economy.
"I don’t really see anything in the long run. It will take two, two and a half years to do it anyways so there’s not too much that it’s going to affect in the immediate and public and market tends to forget once it’s seen the shock of it two or three days, okay and after two or three months it will be like it never happened," said Estes.
Some valley residents think this decision could be a foreshadowing of our upcoming Presidential decision.
"We’re kind of going to be voting on the same type of principle, protecting our borders and things of that nature, so it’s a very similar vote in terms of Great Britain," said Indio resident, Terry Scheurer.
It could take Britain two years to fully remove itself from the EU.
One benefit is that travel to the United Kingdom will likely be cheaper due to a lower value of the British pound.