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Chartered financial adviser's 3 tips in the face of an election

Chartered financial adviser, Sian Thomas, shares her three key principles in the face of an election.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

With so much political uncertainty, it can be tough to make any big financial decisions.

But doing nothing could cost you.

Chartered financial adviser, Sian Thomas, shares her three key principles in the face of an election. This article isn’t personal advice. If you’re not sure an investment is right for you, take advice. Investments rise and fall in value, so you could get back less than you invest.

Sian Thomas, Chartered Financial Adviser:

One thing we can be certain of is that all stock markets hate uncertainty. Only twice since 1992 has the FTSE All-Share Index risen during the period between an election being announced and the vote taking place.

A clear majority for one party or another might see an end to the Brexit saga, but with recent election surprises, and increasingly erratic voter behaviour, the outcome is even more difficult to predict.

It’s undoubtedly a tough time for investors, but we’ve been through tough times before. In my opinion investors need to bear in mind three key principles:

  1. Firstly you should make sure you have enough cash available as an ‘emergency fund’. This doesn’t mean start a fire sale of investments. But if the markets do become more volatile, investors should have access to money they need to pay the bills. This should actually help you avoid selling investments at the worst possible time. We suggest keeping 3-6 months’ of living expenses in easy-access accounts.

  2. Secondly, you need to make sure your investments are properly diversified. While a general election may impact the value of UK stocks in the short term, it’s unlikely to have much of an impact on the rest of the world. On the other hand, we might see volatility in sterling, which will directly affect the value of overseas investments.

  3. Read more about how to properly diversify

  4. Always remember that while stock market volatility is uncomfortable, it can make for some excellent opportunities to buy great investments at low prices, although you should be prepared for a bumpy ride. Investing in the stock market should always be for the long term, and history has taught us that knee jerk reactions can often turn out to be very costly mistakes.

An honourable mention – it’s important to cut through the noise. If you’re overwhelmed by the daily politics and news, take a step back. What you’re hearing today isn’t significant for your long-term plan. Put politics aside and focus on what’s important.

Waiting until the results? Book your post-election call now to find out if taking advice could help

If you’re waiting until the results are announced, now might be a good time to get prepared. You don’t need to act just yet, you can book your call in for after 13 December if you’re interested in taking advice.

A financial adviser could help you get a clear picture of where you are, how the results might affect your finances and to sense check your strategy.

We expect our diaries to fill up fast once the results are announced, so secure your call today. You’ll find out free of charge what’s involved and how we can help.

Book a call back


Read more of our general election coverage

All our latest expert comment in one place.

General election 2019

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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