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Business

'Brexit' to bleed U.S. retirement accounts

Opening sequence

Opening sequence

Business

'Brexit' to bleed U.S. retirement accounts

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COMING UP:'Brexit' to bleed U.S. retirement accounts

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Transcript

00:00:01
>> The reality of Britain's momentous Brexit vote is beginning to sink in to US investors this morning and it's not a pretty picture. And for the average American you're gonna see it right away in whatever your retirement account is. Your 401k, your pension. And that's because about half of American savings in their retirement accounts, are allocated to stocks, and they're getting pummeled across the board right now.
00:00:25
And overnight at one point, the selling was so bad that it exceeded 5%, and trading had to be stopped for about half an hour in the middle of the night. Trading has resumed, but again, it's bloody across the board for stock investors. On the upside, your mortgage is going to go down, either if you have an adjustable rate mortgage, or if you are looking to buy, or to refinance, the opportunity to get a 30 year fixed rate mortgage is going to be much more affordable in the days and weeks ahead.
00:00:56
Mortgage rates had already fallen to their lowest in about three years. But the last time we saw the 10-year bond yield down this low in 2012, that coincided with the 30-year fixed-income rate on average dropping below 3.5%, which was the lowest since World War II.