KAILUA-KONA -- The decision of one island populace in the Atlantic Ocean could have ramifications felt by another in the Pacific.
After the United Kingdom voted in favor of exiting the European Union, stock markets dropped across the world, and Hawaii residents likely won't be immune from changes on their investments. But some West Hawaii investors preached patience monitoring how the situation half way around the world plays out rather than focusing on any drastic shifts in the coming days.
"It will have some short-term impact. I'm not really concerned for the long-term," said Jerry Anderson, owner of Anderson Wealth Planning in Kailua-Kona.
That opinion is echoed by David Uhlmann, financial adviser with Ameriprise Financial Services. Sudden changes and how everyone reacts to them isn't necessarily an indicator for how things are going to be years from now.
"The market doesn't like surprises," he said.
Thursday's election outcome could certainly be classified as a surprise. So too is what's in store for England, a national financial power, now that its decided to leave. That uncertainty amplified the effect on the market, Uhlmann said.
The EU is an economic and political agreement that currently includes 28 countries. It eliminated tariffs to encourage trade throughout the region. Nineteen of the countries began using the Euro, although the British retained the pound.
People with a heavy international portfolio may see their investments sink, said Anderson, at least temporarily. But American investments are likely to be solid, he said.
"The US really is the bright spot in the world economy right now," said Uhlmann, citing that he and other investment professionals suggest a majority of a portfolio be American.
Uhlmann views the drop as giving up some of the gains made so far this year. It also creates a number of opportunities, he said, as investors may be unloading useful stocks that can be bought at a lower price.