11th Decemeber 2020: General Election – Things to Consider
– Boris Johnson wins with a comfortable majority; the most widely anticipated outcome at present according to the polls, and a result that would likely see GBP strength. However, it could be said that some of the movement is already “priced into” the market, meaning that it wouldn’t be a huge surprise if this outcome materialises and therefore it may be met with a relatively muted reaction…
– Jeremy Corbyn wins with a comfortable majority; the outcome least expected at the moment, but given recent examples of how wrong the polls can be in the build up to major political events (think of the EU Referendum and of course Donald Trump becoming the most powerful man in the world – not many people predicted those two outcomes), this scenario simply cannot be ruled out, and Jeremy Corbyn will be praying that the work put in by him and his team in recent weeks will be enough for him to cause an upset almost as big as Anthony Joshua losing his belts to Andy Ruiz a few months back, something now confined to the history books following his win last weekend..! If this happens, expect borderline Armageddon as the markets adjust to the fact that there is a new sheriff in town. The Pound could be in real trouble as the uncertainty that a Corbyn win could cause would be significant given his radical plans for spending and controversial past.
– No clear majority – Hung Parliament; the outcome that will get the Westminster merry go round in full swing, with members of rival parties suddenly becoming best buddies despite trash talking each other constantly in the build up to the election in the hope that a coalition can be formed giving both parties a say at the top table of British politics. Likely to cause uncertainty as per a Corbyn victory which could give the Pound a major headache in the days to come.
This is a brief but hopefully helpful summary of 3 most hotly anticipated. Other outcomes are of course possible..!
What we want you to think about is how each potential outcome affects your transactions and whether you are willing to risk riding out the potential storm if things don’t go your way.
We are on hand tomorrow to discuss your situation in more detail, so please get in touch! We have solutions that can protect you from adverse moves and we want to talk to you about them (Market orders, Forward contracts and simple Spot deals) And remember, you can trade via the online platform on or around the result, so get some popcorn in and enjoy the show!