Sell US stocks? Buy UK stocks? Nothing?
The market has priced in a Conservative majority. I’d expect a slight rise on the Labour risk stocks none the less. However, I think there will be a rally as confidence generates speculation that things in the future will be clarified and sorted. That breeds excitement and demand outpaces supply which = higher share prices.
As I have said earlier world stocks including many of the FTSE 100 are mostly driven by US and CHina and little to do with Brexit. For many FTSE 100 companies Britain would be a small part of their market.
Thank you.
And what do you think of USD/GBP? Could it decrease in case of conservative majority? So far I only have been holding US stocks. My salary is in £.
The pound has been rising today so your US stocks and now worth less in £. However, the pound is climbing because there is greater confidence so it is likely your portfolio has gone more green despite it facing a negative FX. I think the FX has been low for quite a while, but I’m no expert on currency. I think if the economy stays strong and America doesn’t sort its trade war it’ll climb more. Wouldn’t surprise me if it was 1.40 this time next year.
I bought some FTSE UK All Share banking on a conservative majority which I hope will lead to some Brexit clarity and increased business confidence. Also been researching developer jobs in the Netherlands and Switzerland in case I need to leave the country in a hurry…
I read this title and was like “surely folk aren’t having a party”
Curious why you’d need to leave the country in a hurry? If it’s because of Corbyn’s economic plans why would you consider the Netherlands where taxation and public spending is higher?
Agreed. If anything @fryry look at the NHR program for Portugal 10 years tax-free for Foreign-derived Income
Yes, due to Labour’s economic plans, which I believe will work out the same way they have worked out everywhere else they have been tried.
Netherlands due to this:
If I remember correctly the Netherlands has quite hefty Income and Social Security Tax. What is the impact of Brexit on the Social Security Tax? I’m sure it can be avoided for EU expats but not sure going forward …
I would predict a modest rise in the FTSE and a strengthening of the pound if we get a Conservative majority in the short term. As has been said all the polls are pointing to this so this is reflected in current market sentiment.
If it’s a labour majority or hung parliament resulting in a clear possibility for labour to form a government then both FTSE stocks and the pound will weaken substantially, although as labour are promising a much closer trading relationship with the EU and a possibility to stop brexit altogether this may offset a weakening of the pound in the medium term.
As for what I’m doing? A whole lot of nothing, if Pennon (an at risk Corbyn nationalisation stock) jumps by an obscene level following a Tory win (I think something in the ballpark of +20% would tempt me) I’d be minded to sell my holding, outside of that I doubt I’ll be doing much unless some unpredictable opportunities arise.
Off topic - Why did you invest in Pennon over Severn or United?
Who is selling US stocks?
Better and more consistent EPS and revenue growth driven by their recycling division if I recall correctly from my thoughts at the time.
But lazy research also played a factor if I’m being honest
What I am doing? Moving ownership of my trillion pound companies abroad and buying a yacht in Monaco whilst applying for a Maltese passport.
Oh, if only I had these problems of luxury.
I’m not well off at all. And will be implementing a relaxed life in Portugal in January. DYOR but I can survive on half my wage out there while accumulating assets. Some people might see me mention PT a lot but seriously look into it. You’d be mad not to not even research it.
10 years tax-free foreign income. I rest my case. I’m 27 but I have no wife or kids so it enables me to really track my spending
Interesting Shane, do you have any other assets other than your Freetrade account?
I’m in a very similar position, and have been looking at using this opportunity to accelerate my wealth.
Policies which have failed in economic wastelands like Germany and the Scandinavian countries?
I think a lot of business people will be rushing for the door under a Corbyn/McDonnell administration, and frankly who can blame them when company shares, to take one example, would be at risk of being seized by the state.
I think that’s highly unlikely, They are only talking about nationalising things that were previously publicly owned such as utilities. IMO a lot of these should never have been sold of in the first place