What happens to the FTSE if the UK becomes Socialist?

Thrugelmir

newbinvestor wrote: »

I read that more youngsters prefer socialism to capitalism. Corbyn is a socialist.

With myself and many on here investing in stocks/funds, do you think socialism could wipe out the stock market completely? It is a worry of mines as I'm relatively young so theres plenty of time for it to happen.

Are you happy to invest in Chinese companies then? Probably a greater political risk.

Voyager2002

newbinvestor wrote: »

I read that more youngsters prefer socialism to capitalism. Corbyn is a socialist.

With myself and many on here investing in stocks/funds, do you think socialism could wipe out the stock market completely? It is a worry of mines as I'm relatively young so theres plenty of time for it to happen.

Historically, Labour governments have been good for business and for returns from investments. I am actively campaigning for Labour, and expect to make a packet over the next few years if they form a government.

Just for the record I am in my early sixties and have been an active investor since you learnt how to do arithmetic.

steampowered

There are plenty of very capitalist countries - countries which are much more capitalist than the UK and have lower taxes - Singapore, for example - that have nationalised power, water and broadband. They are all natural monopolies.

There is a bit of a sliding scale here. The country isn't just bouncing between two absolute extremes.

The last estimate I read was that the Conservatives were envisaging a state constituting 41% of GDP, and Labour 43% of GDP. That isn't actually a massive difference when you think about it. For example both parties are planning to increase NHS spending and debt; Labour are just intending to increase NHS spending a little bit more.

doe808

newbinvestor wrote: »

I read that more youngsters prefer socialism to capitalism. Corbyn is a socialist.

With myself and many on here investing in stocks/funds, do you think socialism could wipe out the stock market completely? It is a worry of mines as I'm relatively young so theres plenty of time for it to happen.

(1) Avoid stock markets until you understand how they operate, (2) Read more than the Daily Mail, (3) Understand how peoples political views generally change as they get older, as outlooks and needs change. Mass of studies on this stuff.



Brexit is a much bigger danger than socialism if you are invested in the UK, and I'm no socialist.

Thrugelmir

steampowered wrote: »

The last estimate I read was that the Conservatives were envisaging a state constituting 41% of GDP, and Labour 43% of GDP. That isn't actually a massive difference when you think about it. For example both parties are planning to increase NHS spending and debt; Labour are just intending to increase NHS spending a little bit more.

Meanwhile the family silver continues to be sold. GDP includes profit. That profit is increasingly flowing overseas.

veryintrigued

Champagne socialists.

You know the type..... campaigning to get rid of the same private school which they sent their own kids to!

It's a like an episode of 'In the thick of it:

newatc

Some of the replies to OP seems a little patronising imo.

I think a Corbyn majority government (which I think is unlikely) would be a negative for UK based businesses (FTSE 250 principally) and of course there will be non-FTSE issues for many (good and bad).

MaxiRobriguez

newatc wrote: »

Some of the replies to OP seems a little patronising imo.

I think a Corbyn majority government (which I think is unlikely) would be a negative for UK based businesses (FTSE 250 principally) and of course there will be non-FTSE issues for many (good and bad).

Perhaps, but most people's FTSE250 allocation is likely to be (or should be!) a small proportion of their overall portfolio.

Assumptions like this also ignore the fact Labour isn't just Corbyn. The vast majority of Labour MPs, members and voters are left-leaning but are not of the opinion that the private sector needs to be wiped out completely. That and the fact Labour will invest more which should give productivity boosts.

If Corbyn got elected then you'd probably see a quick negative reaction in the FTSE200 because the majority of people with capital would panic because the expectation is at the moment that the Tories will form at least a minority government. The £ would likely fall for the same reasons. However, over time, I think you'd probably find this reaction was overblown, and money would start flowing back into UK based assets and GBP.

If the Tories win power, I think it's likely to be vice versa. A short term boost to FTSE250 and GBP as election expectation is met. Give it six months though and the realisation that the Tory front bench have absolutely no idea what they actually want to do and those with the capital will start looking abroad, especially if GBP is still riding the short term boost.

Voyager2002

newatc wrote: »

Some of the replies to OP seems a little patronising imo.

I think a Corbyn majority government (which I think is unlikely) would be a negative for UK based businesses (FTSE 250 principally) and of course there will be non-FTSE issues for many (good and bad).

You are entitled to your opinion.

However, both the historical record and the details of Labours proposed policies indicate that a Corbyn-led government would be rather good for most FTSE250 companies.

newatc

Voyager2002 wrote: »

You are entitled to your opinion.

However, both the historical record and the details of Labours proposed policies indicate that a Corbyn-led government would be rather good for most FTSE250 companies.

Yes that's the beauty of boards like this, plenty of differing opinions and in some cases, we'll never know the accuracy or otherwise of the opinion. Good to have the discussion particularly if opposing opinions are respected.