Keith Hiscock joined Interactive Brokers’ Andrew Wilkinson again on the IBKR podcast to discuss the implications of July’s UK general election for investors.
Keith noted that current polls suggest a strong chance of a Labour Party victory, which could bring stability by avoiding a coalition government. This stability is generally seen as favourable for investors, as it minimizes the risk of another election in the near future.
Keith emphasized that despite a likely change in government, significant policy shifts are not expected. The Labour Party has been clear in its intent to maintain continuity, especially in economic policies, with only a few potential changes like higher taxes for non-domiciled individuals and adjustments to capital gains tax. Investors can expect a stable policy environment, unlike the more radical agenda of the previous Labour leadership under Jeremy Corbyn.
The discussion also covered the broader economic context. The UK economy, similar to the rest of Europe, is gradually recovering from the effects of COVID-19. The London equity market, particularly the FTSE, has shown signs of growth and recovery. There has been an increase in takeovers, with international investors finding UK companies attractively priced.
Overall, the podcast provided a cautiously optimistic outlook for investors considering the UK market. As Keith says, “I think we might be entering quite an exciting period.”
If you would prefer to read the interview, a transcript is available on IBKR Campus.
