With the election scheduled for July 4th, as your financial advisers, we aim to share our perspectives, not from a political standpoint, but focused on your financial well-being. If you have any concerns about your investments during this period, please feel free to reach out. We’re happy to assist you.
Understanding the Impact of Election Announcements on Investments
The announcement of the election date by Rishi Sunak is significant news. However, it’s essential to maintain a steady investment approach as historical trends show minimal impact on the markets from such political events. For instance, the FTSE 100 experienced only a minor decline of less than 0.6% on the day of the announcement. This is a testament to the resilience of investment markets against short-term political fluctuations.
Why Now? Analysing the Timing of the Election
It’s intriguing to consider why the election would be called at a time when investment markets are near all-time highs. This could be seen as a strategic move, leveraging the current economic optimism. Consumer confidence is on the rise, and with the UK’s economic growth outpacing that of the US and Europe in recent quarters, it appears the Conservative Party is looking to capitalise on this stability.
Market Outlook and Future Investments
Despite the election buzz, the fundamental drivers of investment markets remain unchanged. The recent market recovery, reaching new all-time highs, suggests a robust environment for continued investment. Historical data supports the strategy of maintaining investments during periods of market highs, which often precede further gains.
Final Thoughts and Next Steps
Our advice remains consistent: keep investing if you’re in a position to do so. Political headlines can be distracting, but by maintaining a long-term perspective, you can continue to build and secure your wealth. Should you have any concerns or need further clarification on how these events might specifically affect your portfolio, our team is ready to support you every step of the way.
Disclaimer: This communication is for informational purposes only and does not constitute financial, legal, or tax advice. Please consult with a professional for advice tailored to your situation.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Blacktower Financial Management is authorised and regulated by the Financial Conduct Authority