Posted on: 01-08-2019 in UKIt’s been just over a week since the Conservative leadership race reached its climax and Boris Johnson was appointed Prime Minister. With a change of leadership comes a sense of uncertainty, but should you be concerned about your investments? During his short time in charge, Mr Johnson has made several promises and pledges. There has been speculation, but the potential effect he will have on the economy is still largely unknown. The truth is, no one can predict the future, but we can look to the past for guidance. Historically, the market has provided substantial, long-term returns regardless of who lives at number 10. For investors, this is good news. The above graph shows the growth of £1 invested in the UK market over 60 years. Over this period, both Labour and Conservative governments have seen 12 people occupy number 10. Whether it’s team red or team blue in charge, there are no obvious patterns to suggest a stronger stock market performance in the long-term. Of course, there is the small matter of Brexit. The deal (if there is one) that Britain walks away with could be the defining moment of Boris Johnson’s political career. The markets will likely reflect the outcome of the Brexit negotiations which could see the stock market and your investments take a temporary hit.
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