Advertisement

Ad promo image large
  • Published Date

    January 19, 2020
    This ad was originally published on this date and may contain an offer that is no longer valid. To learn more about this business and its most recent offers, click here.

Ad Text

PROMOTION Election result? Will the UK market enjoy a Boris bounce in 2020? "he initial reaction to the result of the UK General 4.52% (as measured by the Choe UK Al Companies Total Return Index. Source: Factset) from the day after UK election to the end of the year. Election was favourable, with domestic facing stocks enjoying their strongest day of the year after the official results were confirmed. Markets hate The more important question is whether this will continue into 20207 The UK market has largely been ignored by international investors whilst the Brexit debacle has unfolded, and as the cloud over some of the uncertainty and whilst the election does not resolve all the important issues that have hung over the UK stockmarket for the past three years, it did provide some relief for investors. Firstly, it removed the threat to the current UK domestic stocks has cleared there is certainly potential model of the Labour Party's radikal left-wing agenda which had threatened sweeping nationalisation, transferring equity from imvestors to employees and forcing some companies to de-list from the London Stock Exchange, In addition, the election result confirmed that Brexit will 'get done', although what version of this remains to be seen. In terms of sectors, the big winners were utilities, housebuilders and financial stocks, although it should be noted that the largest UK listed companies, such as Royal Dutch Shell, BP, Glaxo SmithKline and Unilever, receive most of their earnings from outside of the UK and are less affected by domestic events. However, global developements were also favourable as the US and China came to a Phase I agreement, which if nothing else, should prevent an escalation of the tariff and trade wars that have threatened the global economy for much of the past two years. All this added up to a stonking finish to the year for the UK equity market which increased by for a further advance. On standard valuation metries the UK is at a discount to other developed markets, and as confidence returns the vahuation gap should narrow. However, global equity markets still largely follow the US and reflect confidence in the global economy and whether the expected carnings growth comes through. For UK investors looking to benefit from the increased clarity of the election result we believe that mid-sized companies with a focus on the domestic market, rather than the familiar heavyweight stocks, are a better place to start. Our managed portfolios have positions to benefit from this view as part of what remains a diverse exposure to various financial markets, critical in limiting the associated risks. Andrew Momis Chartered FCSI Chief Investment Officer at James Brearley Investment Managers & Stockbrokers For further details on the James Brearley Investment Managers & Stockbrokers services, please contact enquires@jbrearley.co.uk or visit James Brearley our website www.jbrearley.co.uk or cal Andrew Holt on 01772 318760 Investing in stock market-based investments may not be right for all investors. You should consider carefully and or seek professional guidance before investing. Please remember that, all performance data quoted is based on past ovents, and past performance should not be seen as a guide to future performance. The value of an investment and any income from it can fal as well as rise as a result of market and curoncy movement and you may not get back the amount originaly invested. You could get back nothing at all. James Brearley and Sons Limited is authorised and regulated by the Financial Conduct Authority (FCA). FCA Reference Number 189219. PROMOTION Election result? Will the UK market enjoy a Boris bounce in 2020? "he initial reaction to the result of the UK General 4.52% (as measured by the Choe UK Al Companies Total Return Index. Source: Factset) from the day after UK election to the end of the year. Election was favourable, with domestic facing stocks enjoying their strongest day of the year after the official results were confirmed. Markets hate The more important question is whether this will continue into 20207 The UK market has largely been ignored by international investors whilst the Brexit debacle has unfolded, and as the cloud over some of the uncertainty and whilst the election does not resolve all the important issues that have hung over the UK stockmarket for the past three years, it did provide some relief for investors. Firstly, it removed the threat to the current UK domestic stocks has cleared there is certainly potential model of the Labour Party's radikal left-wing agenda which had threatened sweeping nationalisation, transferring equity from imvestors to employees and forcing some companies to de-list from the London Stock Exchange, In addition, the election result confirmed that Brexit will 'get done', although what version of this remains to be seen. In terms of sectors, the big winners were utilities, housebuilders and financial stocks, although it should be noted that the largest UK listed companies, such as Royal Dutch Shell, BP, Glaxo SmithKline and Unilever, receive most of their earnings from outside of the UK and are less affected by domestic events. However, global developements were also favourable as the US and China came to a Phase I agreement, which if nothing else, should prevent an escalation of the tariff and trade wars that have threatened the global economy for much of the past two years. All this added up to a stonking finish to the year for the UK equity market which increased by for a further advance. On standard valuation metries the UK is at a discount to other developed markets, and as confidence returns the vahuation gap should narrow. However, global equity markets still largely follow the US and reflect confidence in the global economy and whether the expected carnings growth comes through. For UK investors looking to benefit from the increased clarity of the election result we believe that mid-sized companies with a focus on the domestic market, rather than the familiar heavyweight stocks, are a better place to start. Our managed portfolios have positions to benefit from this view as part of what remains a diverse exposure to various financial markets, critical in limiting the associated risks. Andrew Momis Chartered FCSI Chief Investment Officer at James Brearley Investment Managers & Stockbrokers For further details on the James Brearley Investment Managers & Stockbrokers services, please contact enquires@jbrearley.co.uk or visit James Brearley our website www.jbrearley.co.uk or cal Andrew Holt on 01772 318760 Investing in stock market-based investments may not be right for all investors. You should consider carefully and or seek professional guidance before investing. Please remember that, all performance data quoted is based on past ovents, and past performance should not be seen as a guide to future performance. The value of an investment and any income from it can fal as well as rise as a result of market and curoncy movement and you may not get back the amount originaly invested. You could get back nothing at all. James Brearley and Sons Limited is authorised and regulated by the Financial Conduct Authority (FCA). FCA Reference Number 189219.