If Corbyn is PM, do you think the FTSE would drop?

Wheres_My_Cashback

newbinvestor wrote: »

If Corbyn was the permanent new PM, do you think the FTSE 100 would fall or stay where it is?

Thankfully it won't ever happen and if by some miracle it did, they'll be far worse things to worry about.

dividendhero

Reaper wrote: »

On the whole the stock market sees Labour as anti-business and the Conservatives as pro-business.

.

Tories used to be pro-business, but no longer - The Tories are now a right wing sect hell bent on a hard Brexit, no matter what damage it causes to the economy or business

Alistair31

Wheres_My_Cashback wrote: »

Thankfully it won't ever happen

I seriously hope you are right.

Radiantsoul

Hard to tell. Probably some utilities would suffer but they are a small part of the index.

I am not sure it is something you should focus on. Diversity globally and be patient.

steampowered

During the last election, there were lots of posts on here worrying about what would happen to the pound if Corbyn got elected. Likewise during the 2015 election.

As it turned out, the Conservatives were elected both times, and the pound has sunk like a stone. By about 30% since Cameron got in I believe.

I do wonder at what point the "Labour are bad for the economy" crowd will actually stop and look at the facts.

pearl123

newbinvestor wrote: »

If Corbyn was the permanent new PM, do you think the FTSE 100 would fall or stay where it is?

It will rise, because the current ones are a bunch of turkeys.

SonOf

As it turned out, the Conservatives were elected both times, and the pound has sunk like a stone. By about 30% since Cameron got in I believe.

Sterling was estimated to be about 15% overvalued prior to the referendum. The drop is due to Brexit.

I do wonder at what point the "Labour are bad for the economy" crowd will actually stop and look at the facts.

Facts are light because Labour keep changing their mind and only play to their members. However, what is known would destroy wealth.

DragonQ

Reaper wrote: »

For example it's easy in opposition to declare they will re-nationalise the railways, royal mail, gas and electricity companies but when it comes to paying out huge sums to compensate the existing owners (shareholders) of those companies it might rapidly drop down the list of priorities. Does a socialist government really want to be seen handing over a lot of money to the relatively wealthy rather than the poor?

Viewing it like that is a bit silly (although I have no doubt it's an angle some of the right-wing press would go with). Those shareholders already have the wealth, the assets are just not liquid. A government share buy-back would liquefy those assets (probably after they drop in value due to shareholders being worried by nationalisation) and shift some of the wealth in the country from the private sector into the public sector (after decades of the wealth flowing the other way).

To answer OPs, question, the markets will almost certainly drop if a Labour-led government became closer to reality, simply because of the scaremongering. I mean, did you see the tabloid coverage of Labour's 2017 manifesto? Anyone would think the world was about to end, and yet they made up a 20 point polling deficit.

Longer term, who knows. There may well be another catastrophic recession considering not a huge amount has changed in the financial industry, particularly in the US, which was the source of the last one. And the UK's economy is still too heavily finance-focused too so it'd hurt.


Lots of "the sky will fall" talk in this thread...to those who oppose nationalisation so heavily, I wonder how you would feel about a privatised health care system like the disastrous one that exists in the US right now? There are just some things that do not mesh with a for-profit motive. Capitalism depends on competition so any market in which the customer has literally no choice should be publicly owned (e.g. railways, water). And it's not as if plenty of other countries have similar policies - we don't live in a bubble so rather than predicting disaster why not look at how other countries do things and see what we can learn?

Brian65

DragonQ wrote: »

the markets will almost certainly drop if a Labour-led government became closer to reality, simply because of the scaremongering. I mean, did you see the tabloid coverage of Labour's 2017 manifesto? Anyone would think the world was about to end, and yet they made up a 20 point polling deficit.

Exactly.
Can you imagine their hysteria if Jeremy Corbyn had done half the things BoJo has done
History has shown the pound and equities actually tends to do better after a Labour victory than a Conservative victory. But you will have to look further than the right wing press to find it.

Uxb1

DragonQ wrote: »

Lots of "the sky will fall" talk in this thread...to those who oppose nationalisation so heavily, I wonder how you would feel about a privatised health care system like the disastrous one that exists in the US right now? There are just some things that do not mesh with a for-profit motiv

The trouble is us oldies remember the days of whole scale public ownership where
1. Prices were set and increased by HMG to get in money as disguised extra taxation for them to waste and nowt was spent on the infrastructure.
2. The service for us the consumers was appalling - I can remember two weeks as standard to get a faulty phone line repaired and a new line was 6 months. I suppose few now remember the worst days of British Rail...
3. The endless strikes, as instead of limited private funds for a pay rise the workers knew there was a never ending stream of magic money from HMG - ie taxpayers to fund their excesses.
So we sadly expect a return to public ownership to be a return to much of the above.

As to the NHS - I don't think there is another country in the world that manages/finances health as we do. But each time someone suggests this model is broken all we ever get is a comment that we don't want the USA system which is right at the other end of the spectrum. Well actually it is not. Singapore is even more extreme, basically you and your extended family are expected to pay for everything.
Indeed why not look at how other countries do it - South Korea is reputed to be very good and very efficient- and guess what - every single doctors surgery and all bar 10 university hospitals are in private hands and its funded by compulsory work place levies on the employed and similar on the self employed.