The Darling Buds of May


Alpha Investment Solutions

If a week is a long time in politics I would suggest that the last 24 hours must have felt like an eternity for Andrea Leadsom.

Markets hate uncertainty and lack of direction. At a time when positive political decision making was required, we were confronted with a vacuum. However, two months of political uncertainty and Tory squabbling now appear to have been removed.

With Theresa May we appear to have a ‘safe pair of hands’ and the prospect of the first Prime Minister that has worked at the Bank of England.

Markets have initially taken today’s news as a positive. Notably Sterling’s free fall has seen a major relief rally. The immediate pressure on UK domestic shares appears to have eased and with it we have seen a marked intraday recovery in the FTSE 250. Whilst we still expect further easing measures this coming week from Mark Carney we are guessing that many at the Bank of England will also welcome today’s developments.

Alpha Investment Team comment:

‘We welcome today’s news. Faced with mounting political uncertainty we saw the impact on the UK’s economic situation deteriorating at an alarming rate. In the near term, this paves the way for a much clearer political landscape which markets will welcome, in light of the challenges presented by Brexit. However, the path for the UK’s exit from the EU remains far from clear and we wouldn’t rule out further trips to the polling booth within the next 12 months’.

If you have any further queries, please do not hesitate to contact us.

Further information about Alpha Portfolio Management, our products and services, please visit www.alpha-pm.co.uk or email info@alpha-pm.co.uk. Alternatively, you can call us on 0117 203 3460.

This publication is for informational purposes only and should not be relied upon. The opinions expressed here represent analysis by an Alpha Portfolio Management representative at the time of preparation and should not be interpreted as investment advice.

You should seek professional advice before making any investment decisions. The past is not necessarily a guide to future performance. The value of shares and the income from them can fall as well as rise and investors may get back less than they originally invested. The sender does not accept legal responsibility for any errors or omissions, in the context of this message, which arise as a result of internet transmission or as a result of changes made to this document after it was sent.

Alpha Portfolio Management is a trading name of R C Brown Investment Management PLC which is authorised and regulated by the FCA.
Registered Office: 1 The Square, Temple Quay, Bristol, BS1 6DG. Registered in England No. 2489639
Copyright © 2016 Alpha Portfolio Management, All rights reserved

Full version