Richard Porter, St Albans IFA – Update on how Brexit could affect investments

Monday 3 October, 2016

Richard Porter, independent financial adviser in the St Albans financial planning team reviews how Philip Hammond’s conference speech could affect your investments?

Earlier this week at the Conservative conference Philip Hammond said his main aim would be to spend on transport and new homes, rather than reducing the deficit as his predecessor George Osborne had intended.

Richard Porter, independent financial adviser in the St Albans financial planning team said: 

‘In his Conservative conference speech the Chancellor agreed that the deficit was too big, but he admitted that following the Brexit vote things had changed and his main priority was now to invest to support economic growth and keep people in work.  Following his speech and the announcement from the Prime Minister of a timetable to trigger article 50, sterling has fallen to record lows against the dollar and the euro. In his speech Philip Hammond said that we may see business confidence on ‘a bit of a rollercoaster.’  Following the fall in sterling the FTSE 100 Index rose sharply because so many FTSE 100 companies benefit from overseas earnings.  However, it is still too early to say how equity markets will perform over the medium to longer term, and there is still likely to be market volatility short-term.  At Lonsdale Services we always recommend clients maintain a long term perspective when they undertake financial planning and invest in equities, so they can ride out short-term volatility.  We also recommend our clients invest in a diversified portfolio so only part of their investments are invested in UK and global stock markets, based on their individual risk attitude.’

If you would like to view a long-term chart of the UK stock market over the last 28 years read, ‘Assessing the impact of market volatility on your investments.’

Please remember the value of your investments can go down as well as up, so you could get back less than you invested.   

 

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