Politics and Markets

The election of Jeremy Corbyn, the popularity of the SNP, the spectre of another Scottish referendum and the certainty of an EU referendum should tell us that domestically at least, politics is starting to matter to investors once more.

Of course, politics always matters to an extent, but for the best part of 30 years the fundamentals of British politics have been relatively business friendly, centre to centre right in orientation and focused on law and order and low taxes (this is obviously a very sweeping generalisation).  Above all British politics has been relatively stable; markets crave stability, and can get very nervous very quickly when it appears to be vanishing.

Regardless of an investors views on any of these matters they all have the potential for a big impact on investors, even the prospect of an “out” vote in the EU referendum is likely to lead to a significant sell off of Gilts and Sterling, and an actual out vote could have significant impact on the property market. 

This is just one example, but for UK investors, politics matters once more.

How can you protect your investments from large scale shocks? The best thing you can do is have a broad diversified portfolio, the fact that wine is easily convertible and internationally traded is just icing on the cake.

If you’d like to hear more about how wine can help your portfolio please call Vin-X.