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03 March 2017
POLITICAL UNCERTAINTY

The next few months are going to herald a period of almost unprecedented political turmoil in recent times. We have the triggering of the "Brexit" talks about the UK leaving the EU, France and the Dutch may well elect politicians that are further to the right in the political spectrum than any politicians have been in recent times. In Germany elections in one of the most important regions of the country most affected by immigration may well remove the party of Angela Merkel from power and put  her re-election chances in doubt.

How does all of this affect us? Because politics have a profound effect on the markets. When politics are "stable" the markets can concentrate on company/country economics but when politics are unknown the market starts speculating about what might be and this causes volatility.

Ironically the one sector which may turn out to be the most productive for investing might be OIL where increasing prices are creating opportunities in stocks that have been battered in recent years due to low oil prices.

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