Another defeat for Boris Johnson. No-one is able to predict the intensifying political turmoil engulfing Brexit-weary Britain, meaning the only way to secure your wealth and assets is to remain invested and diversified.
This is the message from Nigel Green the CEO and founder of deVere Group, one of the world’s largest independent financial advisory organisations, as UK Prime Minister Boris Johnson lost yet another crucial parliamentary vote on Wednesday evening. Against this backdrop, Boris Johnson has tabled a motion for a snap general election.
British lawmakers passed a bill aimed at preventing a no-deal Brexit, in another decisive blow to Mr Johnson. It cleared the House of Commons by 327 votes to 299.
It now goes to the House of Lords where it can be expected that there will be extensive delaying tactics.
Mr Green comments: “In the last few days, Prime Minister Boris Johnson has ordered the UK parliament to be suspended, lost his working majority in the House of Commons, and purged senior politicians from within his own party – including the grandson of his idol, Winston Churchill.
“On Wednesday, his highly controversial ‘do or die’ approach to Brexit was thrown out yet again by MPs, meaning the chance of a no-deal Brexit is further slashed.
“Whichever way you look at, Mr Johnson’s political options for his agenda are now significantly reduced and therefore he’s moved a motion for a snap general election.
“However, he might not get his way on that either. The leader of the opposition Labour Party, Jeremy Corbyn, has said that he would only agree to a general election after a law is passed removing the risk of a no-deal Brexit.”
The deVere CEO insisted on Wednesday: “The squeeze on Boris Johnson’s plans will have a positive effect on the pound in the short term – we can expect it to trade considerably higher in the coming sessions as the potential for the PM losing his threat of no-deal increases.”
“However, this might also be put in context. The rebound will be tempered by an imminent election.
“An election always creates uncertainty and therefore turbulence for sterling, but even before it is called there will be major question marks as Jeremy Corbyn, the Labour leader, is now demanding no-deal is off the table before he agrees to go to the polls.
“And should a Corbyn-led Labour party win that election, there will be even more bad news for the pound.
“His anti-business rhetoric and high tax and low-profit policies would lead to a significant sterling sell-off.”
The deVere CEO concludes: “No-one – but no-one- is able to predict the frenetic intensifying political turmoil engulfing Brexit-weary Britain – there are too many variables and too many potential outcomes and consequences.
“This means the only way to secure your wealth and assets is to remain invested, to take advantage of the upswing when it happens, and to be diversified across asset classes, sectors and regions.”