Dan Kemp: Like everyone else we’re still reeling at the result from last night and this morning. I don’t think anyone really expected a Conservative majority – and that’s really the most business friendly outcome that could have happened.
It is particularly good for shareholders of course, because the Conservative Party are committed to pro-growth policies, pro-business policies, and so that’s good news for them.
But for bond holders, maybe not such good news, as growth inevitably leads to rising interest rates and therefore there may be pressure on bond yields.
There is also a cloud on the horizon over Europe; now we’re expecting a referendum over the next couple of years. That may cause an issue for sterling and inward investment, but that is probably a little too far away for most investors to worry about just now.
But the real thing to remember is that valuations are very high and that is a dangerous position to be in, regardless of the stripe of your political leadership.
