SAN ANTONIO – An equity investment expert from USAA said that uncertainty from the BREXIT vote makes investing volatile in the short term.
"Well, the markets are stunned, as I think most people are," said Wasif Latif, USAA Assistant Vice President of Equity Investments.
Latif said markets closed Thursday under the assumption the United Kingdom would remain a European Union member nation. But the unexpected outcome really shook things up on the global market.
"This new information was a pretty sharp surprise, and that's why you got the sharp move in the market," Latif said.
He said people's 401(k) plans, regardless of where they live, could be affected.
"It impacts us because we are global investors," Latif said. "Everybody's 401 (k) to some degree has some global diversification, which is a benefit in the long run. We believe in that."
Latif said the hit felt by Wall Street and investors everywhere is like a lesson straight out of finance 101.
"In plain old simple terms, there were a lot more buyers than sellers. When everybody wants to exit out of the room at the same time, the door's kind of small," he said.