Theresa May’s decision to call a snap election, initially felt like an attempt to throw a stone in the relatively calm ‘investment’ pond, as markets have had an unparalleled and unexpected period of low volatility and positive market growth.
Yet the sudden announcement didn’t create the feared market turmoil. Rather markets settled down and Sterling strengthened as a currency.
The main reason being financial markets, around the globe, saw the announcement as an opportunity for more stability and predictability.
On listening to and reading the various market updates from investment houses, they’re united in their view that Brexit could still create ups and downs for investors, yet the opportunity for a clear political direction for the upcoming five years is very welcome.
Plus, the various polls showing the Conservative’s should be in a strong position to negotiate with the EU over Brexit is also perceived as a stable and predictable outcome.
Equally, the French election has now been settled and reasserted some stability in Europe.
As always, we would add that very little is 100% predictable in life therefore there is still cause to consider all options. For our clients, we consistently look to ensure they’re diversified across various sectors, asset classes and geography.
Our aim is always to take advantage of investment growth opportunities yet being prudent to hopefully protect against harsh stock market falls. That objective seems more pertinent at the moment as ever.