Remaining confident in your investments can be tough in even the most stable of economies, but introduce the uncertainty of Brexit and you’re bound to worry – especially in light of the defeat of the Brexit deal vote put forth by Prime Minister, Theresa May on 15th January.
This does not constitute advice and advice should be sought in all instances before acting on it.
With May’s recommendations being shot down – 432 against, 202 in support – and with the deadline of 29 March looming for a deal, the prime minister and the deal itself are in a precarious situation. There seems to be no real consensus, however, over what the deal should ultimately be, and whether or not it will have any backers.
What’s next?
Investors are left with more questions than answers about how the market and portfolios will fare after the improved performance of Sterling post-vote. While initially favourable, financial experts are cautioning against taking the result as an indication of how the overall markets will perform as they have been largely unaffected so far. (Beyond Brexit’s impact on the economy, which as many know, has not exactly been positive.)
Apart from decreased growth and reduced interest rates, investors may have little to worry about in the near future, and some financial professionals hazard that the only real immediate consequence for the masses would be the extension of the Article 50 period. There is little confidence any new deal will affect true change though, and options vary from a few months reprieve, a range of Brexit scenarios, or even the possibility of a second referendum.
As doctors and dentists often have investment in properties, our financial experts are keeping a keen eye on the housing market as Brexit negotiations continue.
Take advantage
A close eye needs to be kept on the inevitable roller coaster ride the economy will take in the event that a deal is reached. The prevailing advice for investors from the experts is to ready themselves for more uncertain times and to take advantage of the unpredictable climate to look for new investment opportunities. Good news, however, for long-term investors is that domestic stocks will be very appealing and worth the investment. This presents the perfect opportunity for doctors or dentists to get in on the ground floor, and stock up, so to speak.
Performance and growth
While the possibility of Brexit has been shaping the performance and growth of the stock market for years, when the reality finally comes into play, there’s no telling how much of an impact it will have. A solid deal that fosters the relationship between the UK and the EU is the one way to return confidence back to investors and consumers. Another would be revoking Article 50 entirely – with the possibility of a favourable response from the bond markets in both regions.
A no-deal Brexit would certainly mean increased confusion, unpredictability, and risk in the short-term (3-6 months) while the markets experience growing pains. But once the dust settles, so will the markets. It is highly unlikely this scenario will play out as parliament is widely against it.
Need advice?
No matter what the outcome of a Brexit deal is, the one thing that’s clear is that you need to be prepared for any eventuality. Some investors will be affected more deeply than others, but if there’s a possibility Brexit will have an impact on any aspect of your finances, it’s wise to seek out a financial advisor. If you want to ensure your finances are ‘no-deal Brexit’ proof, don’t hesitate to get in touch with us.
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