Investments under Brexit
Although Brexit has still to be negotiated, it is clear that many opportunities for investments exist. These opportunities are performing strongly for existing and new investors.
Not as Expected
As much as Brexit was a shock to many, the majority of people believed the biggest upset would be to the economy. So far the economy and investments in UK markets have been relatively strong. In fact the economy has grown consistently over the year following the June 2016 referendum. Much of this growth has been widely attributed to the low value of the pound making Britain’s exports competitive.
Prices within the UK have risen as a result of imports costing far more than before Brexit was announced. However as yet, sales figures have yet to really reflect this.
The majority of experts believe that following Article 50 being ‘triggered’ and the Brexit deals being completed there will be little change. In other words this shouldn’t have a large influence on the stock market in the short term. The strength of the pound and the specific terms of the Brexit deals made will be the strongest factors in market movements, as well as the speed of the global recovery in general.
America and Trump
Uncertainty in the US in terms of markets and the government also led to temporary volatility in American markets. The volatility has decreased, however growth is still slow, making Europe and the UK an attractive proposition, with comparatively higher growth and less volatility.
At Connect Financial Services we select investments based upon many factors including the fund managers ability to react to the market changes quickly and appropriately.
What to do Now
Equity investments on the whole are performing well just now.
As we get closer to the Brexit negotiations being finalised and the specific terms being agreed, investors should review their portfolios in terms of the asset class and investment outlook of the underlying investment funds.
If you wish to review your investments to ensure they are in line with your objectives, are not taking too much risk and are prepared for Brexit when it does happen, please contact us for a free initial meeting.
For more info on Brexit and how the EU are still open to a continuation of the old agreement with Britain remaining, see here.