Going forward
Policy changes and what a Labour government means for the economy will take time to materialise as it is unlikely any immediate changes will be made. Future policy changes, such as those mentioned in the party’s manifesto, will still need to go through the rigorous process of discussion and debate by MPs before getting approved by Parliament. And organisations like the Office for Budget Responsibility will be keeping a close eye on any financial impact.
Fahad Kamal, Chief Investment Officer at Coutts, said: “In terms of what this means for the UK population and our clients, we will closely monitor the developments of a Keir Starmer government and its potential impact on markets.
“It’s worth noting, though, that history shows elections generally don’t tend to have a long-term impact on markets. They can create short-term shifts, but investors usually get past that and re-focus on fundamentals such as company earnings, employment and economic growth.”
It’s always worth remembering that past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can fall as well as rise, and you might not get back what you put in. You should continue to hold cash for your short-term needs.
