In normal times, general elections, which allow us to choose a government which will run the country, are held every five years.
But we have just had the third general election since 2015, which confirms that we are not living in normal times. With the votes counted, losers to be commiserated with and winners ready to take their seats in Parliament, at Continuum we are looking at what will it mean to the country, and to your money.
What were the issues that shaped the vote?
Detailed proposals for everything from the economy to defence and policing were set out in the various party manifestos. All talked about the NHS and immigration as well as leaving the EU. Some were starting to take note of what seems be an increasing concern with the environmental crisis. All were keen to woo voters by talking about the many other topics that are affecting life in the UK.
But the fact remains, when it came down to voting, the Brexit question is the one that voters really wanted an answer to.
The Conservative victory
As we have seen, the election has gone to the Conservative Party, and Mr Johnson will now be remaining in Number 10. Investors may have breathed a sigh of relief, thankful that the privatisation of railway, energy and water companies and increased taxation might all be avoided. This could also be good news for inward investment into the UK, but although the Conservative party has always appeared to be pro-business, the surprising fact is that the best economic performance of recent decades was actually seen under Labour. When the party came to power in 1976 the country saw the FTSE rise by an average of 18% a year.
But historic facts aside, the short-term effects of a Conservative victory may be positive. Mr Johnson has promised to bring back the Withdrawal Agreement Bill before Christmas, and to achieve Brexit before the end of January.
Mr Johnson’s resolve may galvanise economic sentiment, but it still remains to be seen whether or not he can deliver Brexit to this tight schedule.
What does this mean for your money?
The country has decided, and you might be tempted to start making decisions about your financial plans as a result. But the important thing to remember is that although the election is over, the Brexit negotiations are not. This means that economic uncertainty continues, and uncertainty can be challenging for the economy, and consequently for investors.
Brexit when it does come may do so with an economic blip or an economic boom, and it is simply too early to say which.
At Continuum, we urge caution. Investment is for the long term, and most events that affect the market – including elections – are short term. You can expect ups and downs but overall, your investments should be invested to deliver steady growth.
Brexit may make a difference to your investment plans – but with nothing finalised, it is still too early to make decisions that will affect your financial future.
At Continuum, we believe the key to financial success is not who is now in Number 10 or the next phase of the Withdrawal Agreement discussions, but on having a sound investment strategy.
We want to help you develop yours.
We have many ways to help. We can help you keep up with the latest financial news with our weekly education mailer and our regular updates. We can provide expertise and market knowledge to support your plans, and a Personal Finance Portal to help you keep track on your investments.
But above all, we can give you personal help from an expert Independent Financial Adviser. Their knowledge of the markets, or investment techniques and of the real opportunities could help you make the most of your money whatever the future now holds.
With a new government, there could be new opportunities. Make sure you are ready to take advantage of them by calling us at Continuum now.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of investments can fall as well as rise and you may get back less than you invested.
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