UK’s most uncertain election looms: TWO REASONS why you need to election-proof your finances now

News


23 Oct, 2019

UK’s most uncertain election looms: TWO REASONS why you need to election-proof your finances now

A UK general election – in essence, a second Brexit referendum - is inevitably on the way, and if you are serious about protecting your money and assets you need to take action now.

This is the warning from the CEO and founder of one of the world’s largest independent financial advisory organisations.

deVere Group’s Nigel Green is speaking out after UK Prime Minister Boris Johnson ‘paused’ his Brexit bill on Tuesday evening after MPs rejected his plans to have it pass through the House of Commons in just three days.

Mr Green comments: “The 27 EU member states are meeting to discuss another extension, which could be granted by Friday. They are likely to push back the deadline to January on the advice of Donald Tusk, the President of the European Council.

“Mr Johnson will then call for a general election. With this extension in place, the Labour Party will support a snap election, making it happen.

“The electorate is extremely volatile and there’s never been a more uncertain general election.  Small shifts will move the needle considerably.”

He continues: “With an uncertain UK general election inevitably on the way, if you're serious about protecting your money and assets you need to take action now.

“There are two key reasons why you should election-proof your finances.

“First, Labour leader and leftist firebrand Jeremy Corbyn might become the UK’s next Prime Minister.  

“His anti-business, low-profit, high-tax policies - including a possible wealth tax - can be expected to spook the financial markets, damage long-term sustainable growth of the British economy, put more pressure on UK financial assets, and lead to a significant sell-off of the pound.

“Second, the election could result in a hung parliament, meaning more of the same indefinite uncertainty, deliberation and chaos.  Boris Johnson might be returned as PM but without a majority.

“The Brexit Party could eat into the Conservative vote as they will claim Mr Johnson did not deliver Brexit by October 31- something on which he staked his whole premiership. 

“Similarly, the Remain vote could be split between Labour, the Lib Dems, the Greens and the SNP.”

He adds: “With both of these general election outcomes, the current unprecedented uncertainty would continue and/or intensify, further undermining confidence in the UK economy and the pound.”

Earlier this week, Mr Green noted: “Wealth, jobs and opportunity-generating businesses – both in the UK and internationally- are crying out for certainty. 

“Brexit uncertainty is seriously denting business investment and confidence in the UK – and the fallout of this has cost Britain three and a half years of lost opportunity and many tens of billions of pounds. 

“It could take a decade or so to recover, even if that recovery of certainty starts now. 

“Britain is losing its edge in a competitive global economy with the Brexit deadlock and politicking.  It is likely to underperform against peers for many years to come.”

The deVere founder and CEO concludes: “For more than a year, people and companies have been making plans for a hard Brexit.  But the looming general election is perhaps an even more concerning development.

“It is perhaps unsurprising that UK and international investors in UK assets are responding to the uncertainties posed by Brexit by reducing their exposure to the UK.

“The best way to position yourself to protect and build your wealth and assets is to be properly diversified across asset classes, sectors, currencies and regions.”