Friday, 9 June 2017

Don’t Panic!

by Miranda Worley

Sterling dropped 2% on news of a hung parliament today – but here are some reasons we shouldn’t be all gloomy. 

1. It appears the election was swung by an increased number of young voters, who traditionally don’t bother to vote. This is great news!  The future of our country belongs to the young, we need them to take an active interest in politics and shape it.  Democracy relies on participation not apathy! 

2. Short-term business confidence may be affected by this political uncertainty, but consumer confidence is a much more volatile concept, and likely to be positively swayed by a period of barbecue weather and a win for the British under 20s football team; if Andy Murray can win the French Open this weekend we may even forget that Ben Ainslie has been knocked out of the Americas Cup! 

      3. The FTSE100 index went up this morning.  A lower exchange rate tends to mean higher repatriated profits for our largest multinational companies.  So returns on your investments will still do OK.  Your invested wealth continues to grow!      
      4. Change creates entrepreneurial opportunities.  We are certainly about to have a lot of change in the next few years, so get out there and take advantage of it, find your niche!

However, the most likely outcome is that we get to do an election all over again before the end of the year…and maybe, like Brenda from Bristol, that might make you a bit gloomy.

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