ANNE RICHARDS

M&G HOW can patient, long-term investors protect themselves from market turmoil, or even take advantage?

From a market perspective, the vote means uncertainty has been reduced. Investors will quickly move on to political risks elsewhere in Europe and farther afield.

Spain goes to the polls today, its second election in six months. Italy has a referendum on its constitution in October. Germany and France have elections next year – and the US presidential race is perhaps the biggest wild card.

Yields on bonds issued by Portugal, Spain and Italy have jumped, reflecting concerns that they could also consider their position within the EU.

The other big worry is the impact of Brexit on the UK economy. In the run-up to the referendum, many economists said a Leave vote would do substantial harm to the finances of UK plc and individuals. They feared it would hit foreign investment, causing interest rates to rise and house prices to collapse.

Whether these dire predictions come to pass will depend largely on future trade agreements between the EU and UK. It is likely nothing will change for up to two years or possibly longer.

Ironically, a steep fall in sterling could make the UK more attractive to foreign investors, particularly in areas such as property, as well as making life easier for British exporters. Corporate bonds, which yield more than government bonds, will also appeal to investors seeking income.

The map of Europe has not changed overnight. For investors whose heads rule their hearts there will be opportunities over the coming days and weeks.