Coalition heralds new dawn
As investors get used to the idea of coalition government, two Gartmore fund managers summarise how UK equity and bond markets see the immediate future.
“Scientists have it lucky. They work in a world of experiment, observation and deduction. They can isolate individual factors to determine their effect and importance. Not so their poor City counterpart. Which is a shame, because if the hype is to be believed Messrs. Cameron and Clegg have brought about a seminal change in UK politics. Too caught up though in European/sovereign debt issues, investors have not the time or inclination to think solely about domestic considerations. But for the sake of the title of this piece, let’s try and unravel how this new government may change the equity market’s prospects…”
“Given the twists, turns and ‘historic’ moments of the 2010 general election, the lack of volatility in the UK bond market came as a surprise to many. Gone were the days when the gilt market would move points on a single opinion poll (1987), or surge after a surprise result (1992). This time round the market was remarkably sanguine and chose to focus more on events in the Eurozone throughout most of the campaign period. Many observers now believe that reading the election result was the easy bit, compared to analysing where the new coalition takes us from here…”
Tags: Chris Burvill Gartmore Cautious Managed Fund, John Anderson Gartmore Corporate Bond Fund, News
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