Our Investment Update

The outcome of the General Election has turned out to be probably the worst possible from the perspective of investors.  This is not a political observation, simply recognition that we now have a raft of uncertainties ahead of us.  It is little surprise that sterling has fallen, or that the larger UK companies, with strong overseas earnings, opened higher and the more domestic-oriented medium sized companies slipped back.  The question, though, is what do we do now?

In order to answer this, we need to consider where we are.  Overall, the UK economy has been in pretty good shape.  Despite some dire predictions, it has actually proved to be one of the stronger global economies.  There are, though, some challenges.  However, this growth has slowed recently and there are some worries over consumer confidence.  The prospect of a tax and spend government may have receded, for now, but a slowdown in consumer spending would not be good news.  The concern is that it might translate into a recession – not necessarily a bad one but, nonetheless, not something investors would welcome.

Reacting too quickly in circumstances like this is not always the wisest thing to do.  To be clear, this is not a crisis – no matter how much some parts of the media may want to build it up to be.  We want to reflect carefully on the medium and longer term implications before taking action.  This outcome was one that we had specifically considered and we had reviewed our positioning accordingly.  Our larger companies’ exposure, together with our international – particularly our US dollar exposure – should be real beneficiaries today.  Our focus now will be on how best to adapt our positioning to address the coming months rather than days.

Regulatory Notice

European Wealth is a trading style of European Investment Management Limited (registered number 06931664) which is incorporated and registered in England and Wales with registered office at Ellenborough House, Wellington Street, Cheltenham, Gloucestershire GL50 1YD and authorised and regulated by the Financial Conduct Authority.  This message contains information that is confidential and privileged and it must not be distributed to any third party either whole or in part. If you are not the intended recipient, please advise the sender immediately and delete this message. This message is not to be construed as a solicitation or offer to buy or sell securities and does not in any way constitute investment advice, nor should it be used as the basis for any investment decision. The information contained in this message has been prepared using all reasonable care. However, it is not guaranteed as to its accuracy, and it is published solely for information purposes. Our opinions are subject to change without notice and we are not under any obligation to update or keep this information current.

Risk Warnings

The investments discussed in this message may not be suitable for all investors. European Wealth does not guarantee the performance of any investments. Past performance is not necessarily a guide to future performance. The value of investments may go up or down and you may not get back the amount you have invested. The income from an investment is not fixed and may fluctuate. The value of an investment involving exposure to foreign currencies can be affected by exchange rate movements which may cause the value of the investment to go up or down. European Wealth and/or its affiliated companies and/or their employees may, from time to time, hold shares or holdings in the securities discussed in this message and may as agent buy or sell those securities.

Restricted Investors

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