Pound and UK assets to remain volatile in election lead-up



The pound and UK financial assets will be volatile in the run-up to Britain’s first December general election since 1923 and will remain so if there’s another hung parliament, according to deVere Group.
Nigel Green, founder and chief executive, said a victory for Jeremy Corbyn and Labour would do little to inspire confidence for the sterling or UK financial assets, and it was far from guaranteed Boris Johnson would be able to secure a majority in the House of Commons.
“The Brexit Party will use the fact that Mr Johnson did not deliver Brexit by October 31 – something on which he staked his whole premiership,” Green said.
“The remain vote could also be split between Labour, the Liberal Democrats, the Greens and the Scottish National Party.”
Green said a hung parliament was the most likely outcome as the country had not seen political fragmentation at this scale before.
“Should grinding deadlock continue, the UK economy would still haemorrhage investment and confidence,” Green said.
“The fallout of Brexit has cost the UK three and a half years of lost opportunity and many, many tens of billions of pounds. This would only intensify with another hung parliament.”
“Meanwhile Jeremy Corbyn’s Labour party will campaign on the most radical, left-wing manifesto in more than a generation.”
The only current option for investors was to make sure they were diversified across asset classes, sectors, regions and currencies.
Recommended for you
Adviser losses this week are quadruple the same period a year ago, with the industry falling into negative territory for the last 12 months.
Colonial First State has announced the latest manager to join its Edge managed accounts menu, focusing on providing investors with a strategic income.
Rising advice fees has prompted Radar Results to increase its price guide to a minimum of $3,000 per client to reflect the changing shape of the adviser landscape.
Investment consultancy Ascalon Capital has appointed a new partner, who joins from 20 years at Zenith Investment Partners, as well as a new chief executive amid a “bold new chapter” for the firm.