Three potential game changers in 2018
By Clive Hale, director, FundCalibre, 19 Dec 17
It’s that time of year: Santa rallies, market outlooks and crystal ball predictions of where the FTSE will end 2018 are the subjects du jour. So rather than buck the trend, Clive Hale suggests three potential game changers for 2018.
We’ve seen the end of the beginning, but there is still a long way to go. MPs have delivered another blow to Mrs May’s plans, as Tory rebels sided with Labour and voted to give Parliament a legal guarantee of a vote on the final Brexit deal struck with Brussels.
This won’t be what the Prime Minister wanted, especially as Michel Barnier and Guy Verhofstadt have said there must be no change to what has already been agreed – in other words, no wriggle-room.
It’s highly unlikely that a trade deal will be in place before the end of the two-year period and, between now and then, Mrs May has to tread very carefully with her own party and the DUP.
Otherwise, we could get an election and a Corbyn government. At that point you’d probably want to be underweight the banks at the very least, if not UK plc as a whole.
European equity funds such as Threadneedle European Select and GAM Star Continental European Equity may be a better bet.