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Planning

Investment
Philosophy

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28th
May
2024

How much impact does the UK Prime Minister have on stocks?

It’s natural for investors to look for a connection between who resides in 10 Downing Street and which way stocks will go. But regardless of who wins, decades of returns show that stocks have trended upward.

Exhibit 1 shows the growth of £1 invested in the UK market over almost 70 years and 17 prime ministers (from Winston Churchill’s final months to Rishi Sunak). We can see that over the long run, the market has provided substantial returns regardless of who’s in charge.

How Much Impact Does the UK Prime Minister Have on Stocks?

For illustrative purposes only. Source: FTSE. FTSE data published with permission of FTSE. Graph shows earliest available data for the index.

Past performance is not a guarantee of future results. Index is not available for direct investment, therefore, their performance does not reflect the expenses associated with the management of an actual fund.

That’s because shareholders are investing in companies, which focus on serving their customers and growing their businesses, regardless of which government is in charge.

Prime ministers may have an impact on market returns, but so do many other factors – the actions of foreign leaders, interest rate movements, changing oil prices and technological advances, to name a few.

The bigger picture is that stocks have rewarded disciplined investors over time – regardless of who has won high-profile elections.

Duncan R Glassey
Founder & Director – WealthFlow
duncan.glassey@wealthflow.com

 

This article is distributed for educational purposes and should not be considered investment advice or an offer of any product for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed. Past performance is not indicative of future results and no representation is made that the stated results will be replicated. Errors and omissions excepted.

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© 2024 WealthFlow Group Limited
All Rights Reserved | Privacy | Cookies Policy

Head Office & Consulting Rooms: 10 Charlotte Square, Edinburgh EH2 4DR.

Mail correspondence to our Central Scotland Admin Hub: WealthFlow Group Limited, PO Box 14947, Grangemouth FK3 3AU.

WealthFlow Group Ltd is authorised and regulated by the Financial Conduct Authority.

The guidance/advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.

For your protection, unresolved complaints can be referred to the Financial Ombudsman Service.

To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

WealthFlow Group Ltd. Registered in Scotland No SC635011. Registered Office: 10 Charlotte Square, Edinburgh EH2 4DR.