How worried should we be about a change (by which, read, to Labour) of government? Well, one person’s change for the better is another’s worst nightmare, of course, but let’s try to look at this with the dispassion of the markets and money persons. Firstly, lessons of history, different is not necessarily worse and arguably having a chancellor with an actual qualification in economics is a good thing; although, yes, Rishi has one too. And although history, they say, rhymes rather than repeats itself, ‘a change of government, and defeat for the incumbent is not necessarily a bad thing for UK equities’ and ‘the FTSE All-Share has often reacted positively to a change in Government’. Whatever your politics, it seems certain the ‘shake up’ will not be as potentially drastic as it may have been when other incumbents of whatever persuasion have been threatened; which makes it, I’d say, more likely to happen.
“What next for investors if interest rates have peaked?”
What next is a much better couple (or more) of years ahead. If you have investments, you’ll have seen a pretty sharp ‘uptick’ since November after a pretty sharp ‘not much happening or going down’ since the beginning of 2022. We’ve said many times that when things move, they can move pretty quickly.
