2019 General Election: Will it help Brexit?
Our view on whether the 2019 general election will help Brexit and what this means for your investments.
The revised deadline for passing a Withdrawal Agreement through parliament of October 31st is behind us. A 2019 general election has also been called for December 12th. Nevertheless, more than 3 years after the referendum, the future of our relationship with the EU is still unclear.
Subject to the result of the election, all Brexit options are still on the table (hard / without an agreement, soft / with an agreement, none-at-all / revoke article 50). There are good reasons to be optimistic that we have reached the final scene in this unhappy drama.
With the EU having granted another membership extension to January 31st 2020, this optimism stems both from the fact that a Withdrawal Agreement with majority support in principle has finally been crafted. It also comes from more coherent party-political positioning. Clear party-line divisions in relation to Brexit policy suggest the general election will now settle the matter.
Why do we think this?
If the Conservatives or Liberals were to win a majority, they would either re-present the current deal or cancel Brexit altogether. These are both definitive outcomes. A Labour government or a hung parliament would promise another referendum on Brexit with a delayed and finely poised outcome. Though, the template for an exit, should it be backed by a popular vote, is now available.
In short, we believe there is an increasingly high likelihood that the UK will know its future path in relation to the European Union by the beginning of 2020. The path will also be less hard than many have feared. Whatever the outcome, relief rather than celebration is likely to be the predominant emotion. This is since the hard work of healing the wounds sustained in this prolonged family argument will be just beginning.
So, what does this mean for your investments?
The purpose of this update however, is not to make predictions. Far more important than our view at any given moment are the time tested principles underpinning our investment process. Innes Reid take a long term view. We invest in funds whose prospects are influenced predominantly by global forces. This is rather than by the fortunes of the UK alone. We prudently diversify both within and across asset classes and emphasise high quality in all areas. These simple principles have proven robust in the last 20 years and we expect the same in the future.
Clients who understand our long-term focus will not be surprised to hear us repeat our “keep calm and carry on” mantra.
Worried about the uncertainty?
It can be extremely difficult to know what strategy is right for your goals during times like this. If uncertainty is causing you to worry about your finances, now could be the perfect time to talk to one of our friendly experts.
The experience, expertise and knowledge of one of our Financial Advisers can provide confidence and peace of mind. Call us on 01244 347 583 or email us at: info@innesreid.co.uk. Initial consultations are free of charge.
DISCLAIMER: The content in this article is for informational purposes only and is not advice. Remember all investments, and the income they produce can fall as well as rise so you could get back less than you invest. You should consult a Chartered Financial Planner regarding your individual circumstances before taking action.
