The UK general election has come and gone with Labour winning a landslide victory. The UK now has a new Prime Minister, Kier Starmer. What might this shakeup of the UK’s government mean for you?
Results
As seen in the chart above, Labour has formed a clear majority government by winning 411 seats in Parliament. As noted by the House of Commons Library Website: 300 MPs were re-elected, while 335 successful candidates are becoming MPs for the first time. 15 are becoming MPs again after a gap in service (that is, they have been MPs at some point in the past, but were not MPs at the time of the May 2024 dissolution).
Impact on the Financial Markets
While there has been some typical volatility as is characteristic of election periods, the results of this election were largely expected. This combined with Starmer having purported multiple times to be “pro-business” has meant that markets have generally reacted favourably to the change in government. Whilst no one has a crystal ball, a period of stability is expected to follow, and we do not anticipate the markets experiencing any more volatility related to the recent results.
Conclusion
As we noted in our pre-election write-up, elections are a significant event for many facets of daily life, but their impact on your investment portfolio can be managed. By focusing on diversified assets such as ETFs and maintaining long-term outlooks, potential short-term volatility can be navigated. Please keep in mind that with investment, your capital is at risk. The value of your investment can go up as well as down.
Remember, staying informed and maintaining a long-term view are key elements to increasing the odds of successful investing. Wealth8 continues to provide support in aiding its clients to achieve their financial goals.
Comments