UK Election Result: A Murky Future Awaits
The British political landscape has become a tangled mess of contradictions and uncertainties, a kitten’s playball of loose ends and unravelled ambitions. For years to come, the UK General Election of 2017 will be cited as a salutary warning to others of the perils of complacency and the price of underestimating the strength of your opponents.
That the electorate did not want another election was known before one was called. To then prod ‘the beast’ with what proved to be a blunt and useless instrument, was foolhardy, even if that can only be said confidently with hindsight. Prime Minister May asked the electorate for a coronation and got dealt a bloody nose instead.
Political pundits can and will analyse the results, seeking to unpick the knots, constituency by constituency, in what may prove a fruitless search for reason and meaning. In truth, the only message to be gleaned from the runes is that Britons are uncertain of which course they wish to sail. Do they wish to steer to the left or right of centre? Are they for, or against, austerity measures? Do they want a hard or soft Brexit? Indeed, do they still want Brexit at all?
For those of us tasked with making judgement calls on how events might shape markets, the election result probably throws up more questions than answers. Will May be able to cobble together a working majority? How long will she last? How will the result affect Brexit negotiations? Will sterling continue to slide? And the big one: how long before another general election is called?
So, what to do? Diversify your portfolios and ensure that your assets remain liquid. The focus today is very much on the UK and the forthcoming Brexit negotiations. However, the Eurozone has deep rooted problems of its own, as too do America and China. Be prepared for volatility and, like us, seek opportunities where others aren’t looking.
I’ll leave you with the words of American Professor of Mathematics, John Allen Paulos;
“Uncertainty is the only certainty there is, and knowing how to live with insecurity is the only security.”