Investments and the Election

Zippeh

I realise this might be a bit of a novice frame of mind, but is anyone considering cashing out their uk based shares or funds before the election?!

Mistermeaner

No. I'm going ride the storm to break on through to the other side until the end

dunstonh

Zippeh wrote: »

I realise this might be a bit of a novice frame of mind, but is anyone considering cashing out their uk based shares or funds before the election?!

Question has been asked several times over the last few weeks.

The most obvious thing is that those asking are inexperienced investors and dont appear to have much in UK equity anyway or investments that would be influenced by an election that has been known about for 5 years and an outcome that has been likely for some time. The UK is just a small country. Do you think the US or China care much for the UK?

Markets dont like the unknown and react to events they didnt know about. The election is known. The outcome points towards a coalition.

TCA

dunstonh wrote: »

The election is known the outcome points towards a coalition.

Not according to the bookies, who reckon a minority Labour government.

TrustyOven

TCA wrote: »

Not according to the bookies, who reckon a minority Labour government.

How do the bookies know this?

EdGasket

I've moved more into cash lately than usual because last election the market was hit quite badly over the uncertainty. This year there is money flowing in left right and centre due to new ISA year, pension reforms, and no real alternative because cash returns are so low, so the market is holding up for now but once the buying spree stops....we'll see.

TCA

TrustyOven wrote: »

How do the bookies know this?

They don't often get it wrong. I imagine they're seeing poll after poll predicting no overall majority and think that if the Tories win most seats (without a majority) they won't have enough support to get a Queen's speech passed, but Labour would with the assistance of other parties, but not in coalition. If I was a gambling man, I'd probably agree with them.

To answer the OP, no I'm not cashing in my UK investments.

atush

If I have profits to take, i'll take them. But I wont be selling just because

Borrowedtune

dunstonh wrote: »

Question has been asked several times over the last few weeks.

The most obvious thing is that those asking are inexperienced investors and dont appear to have much in UK equity anyway or investments that would be influenced by an election that has been known about for 5 years and an outcome that has been likely for some time. The UK is just a small country. Do you think the US or China care much for the UK?

Markets dont like the unknown and react to events they didnt know about. The election is known. The outcome points towards a coalition.

Woodford must be a naïve and inexperienced investor then...


http://www.hl.co.uk/news/articles/election-thoughts-from-neil-woodford

bowlhead99

Borrowedtune wrote: »

Woodford must be a naïve and inexperienced investor then...


http://www.hl.co.uk/news/articles/election-thoughts-from-neil-woodford

He is a marketing man for his fund business and he's appeared on a fund platform website (which offers a discounted class of his fund on the basis that they can drive enough traffic to him to be worth the discount).

Let me guess: he'll probably be saying , "hey, this election is one of many challenges which might produce choppy waters within the world economy. If you invest in my fund, you'll have a great chance of navigating the waters"

Well surprise surprise, I clicked your link and that's EXACTLY what he was saying.
:T. :rotfl:

When I launched my equity income fund just under a year ago I said that I wanted to build a portfolio that was exposed to undervalued assets in pockets of the market where the interaction with the broader economy was more muted. My caution over the world economy remains. Uncertainty caused by the election provides further vindication for a cautious long-term strategy and a focus on high-quality, dependable businesses.

Some of the most attractive valuations in the UK stock market are attached to the shares of companies that are best able to cope with these challenges. This leaves me feeling confident about the returns my portfolio can deliver in the long-term, as we navigate through likely troubled waters.

Nothing to see here people, move along now.

jimjames

TrustyOven wrote: »

How do the bookies know this?

The most likely scenarios seem to lead that way.

If the polls are believed there will be more anti Conservative MPs which could enable Labour to run a minority or coalition.