Election shock sees markets remain steady

June 8th was a landmark day for the UK as a shock election result left many contemplating its impact on the UK’s economy.

In reality, a hung Parliament could potentially be a good thing for investors.

Alan Mellor, Managing Partner of Phillip Bates & Co Chartered Financial Services, said: “Unless something changes, we are in a good position.

“A weak government can’t do very much – politicians won’t want to mess with things, which is good news for investments.”

However, Alan acknowledged that the increased likelihood of a second election within the next 12 months could change this outlook.

“The worry, of course, is if this current level of uncertainty gets worse – there could very well be another election soon and this could have a negative impact on long-term investments.

“It is difficult for businesses to make long-term investment decisions at a time like this.”

Alan does, meanwhile, think we could now be edging more towards a softer Brexit.

“As a result of the election, Theresa May now has no clear mandate, which is a better prospect for the economy“ he said.

“The Government are not going to be able to force through anything radical at the moment. Indeed, the pound fell on the night of the election but this was by very little as not a lot has changed, and I don’t think anything will change anytime soon.”

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