Boris Johnson managed to achieve a majority government when the public took to the polls on 12th December in the third general election in five years. Jeremy Corbyn’s Labour Party have experienced their worst defeat since 1935, which will result in him stepping down in the near future. The Lib Dems rallying call of remaining in the EU seems to have fallen on deaf ears, having less MPs than after the 2017 general election.
Patrick notes that 56.4% of the voters did not vote for this government and thus the electorate remains very divided with the Conservatives achieving 43.6% of the votes cast.
Sterling is reacting to the UK election. There was an immediate rally, as there was from shares in the UK market, reflecting the release of pent up demand following the stalemate over the past couple of years.
Beyond this, and perhaps more importantly when we look further ahead, is the current outlook on global trade, the US – China in particular – and just at the moment headlines are positive.
2019 has been extremely positive when viewed through the lens of investment returns. More so than the malaise sitting over the UK would suggest.
It is so incredibly important to take the long view. Boris Johnson will come and go, Trump likewise. Investment, productivity, technology, social change and ultimately the climate are the underlying issues that all governments face regardless of political ideals, albeit that these create uncertainty and associated volatility that we should expect for the foreseeable future.