In the aftermath of the general election, people are left wondering what the new government will mean for the UK stock market and whether there will less turbulence in the years ahead.
The overall mood amongst financial planners and fund managers is hopeful that greater stability will ensure more flows into British companies both at home and abroad, and that the UK suddenly looks like a safer bet than more politically unstable and potentially volatile competitors elsewhere.
Such a landscape would be attractive for overseas investors and represent good news for fund managers in the square mile who allocate more to the UK within their portfolios. According to investment management firm RC Brown, overseas investors will be carefully watching the new government’s commitment to growth to see how realistic and achievable it is, but if borrowing does deliver a boost to the economy and, in particular, closes the productivity gap, the investment flows won’t be far behind.
The key question now is whether against a more benign backdrop to the UK equity market will rebound and appeal to more overseas private equity investors. Last month, it was reported by Morningstar Direct that large-cap UK equity funds experienced £2.4bn in net outflows in May 2024, and more than £12bn over the course of the year.
Investors will likely be looking out for signs of boosts to the UK’s investment picture, and will want to see clear evidence of meaningful and substantial plans to revitalise the London market.
To further discuss financial planning and stock market investment opportunities with a knowledge and unbiased source, contact Hartey Wealth Management to speak to a financial consultant in Cheshire.