The new prime minister is likely to meet similar challenges given the nation – and as a result parliament - remains divided over what it wants from Brexit. But investors must understand the impact “no-deal” would have on sterling, stocks and gilts versus “change of government”.
Emerging market equities are inherently volatile. But investors shouldn’t be deterred. If investors have a long time horizon, the emerging markets are expected to pay returns well in excess of developed market equities.
The coming week is a very big week for sterling investors since the Chancellor will present a new statement on fiscal policy and there are a series of votes in the House of Commons to break the Brexit impasse.
Historically, an inverted yield curve has been a useful indicator of recessions. However, quantitative easing may have distorted that signal. Therefore, we would not rely solely on the yield curve but also look at other indicators to track economic momentum.
Last night a series of votes took place in the UK House of Commons. The purpose of the votes was to establish a potential way forward for the Brexit negotiations that could command the support of a majority of members of Parliament (MPs).