The party is proposing a programme of nationalisation that would bring into public ownership:
- the Royal Mail
- rail-operating companies
- energy supply networks
- water and sewerage companies
Uncertainty about the outcome of the election is surely partly informing investment decision in these UK industries. On top of this, Labour’s plan to have free fibre broadband for all by 2030 involves the part nationalisation of BT.
Thus, it could be argued stocks within these industries will increase significantly should the Conservative Party win the impending General Election.
Meaning a good time to buy would be now or if, at any point soon, Labour receive more favourable polling / press in a given day.
I believe personally the outcome of the General Election will be a Conservative majority (or perhaps a Con-etc coalition) but I don’t believe Labour will win. Hence, I’m definitely going to consider investing in some of these areas.
What do you all think?
Addition: The Royal Mail stock price dropped 14.2% the day the Labour Party Manifesto was announced (21st November). Although it has mostly recovered, it will be interesting to see if any other stocks that would be affected by the Labour nationalisation plans have not fully recovered.