2019 Election: Will the real Boris Johnson please stand up

Charlie Parker
Charlie Parker

Heroes come in many guises but 10 years ago British business could never have imagined a saviour quite as dishevelled as this one.

Boris Johnson’s thumping victory in yesterday’s general election sets the tone for a decade of further Tory rule, a resolution of Brexit and for Johnson the space needed to negotiate trade deals with the US and EU with little fear of a threat from the House of Commons should the process become delayed. This largely eliminates the risk of a no-deal Brexit.

 Exactly what sort of leader he will be remains to be seen. Those who know him best predict a shift to the centre-ground with perhaps more social liberalism – more metropolitanism – than many of his supporters expect. But those debates are for another day. 

Today UK Plc breathes an enormous sigh of relief. The possibility of Jeremy Corbyn’s Labour forcing nationalisation, four-day weeks, windfall corporation taxes, rapid wage hikes and possibly even an end to independent central banking has been removed.
This undoubtedly releases a handbrake which had prevented investors backing UK companies. It is for this reason that relative to other major developed markets the UK has remained exceptionally cheap. A removal of Brexit uncertainty and the prospect of a centre-right economic platform will buoy new investment. 

To capture this trend we moved last month to invest in a broader range of UK companies, including those that were trading at low valuations as a result of Brexit uncertainty. This is because to capture the benefits of a resurgent UK we believe investors must look beyond the small handful of UK companies in which they have huddled for safety in recent years.

Ultimately we believe the election result supports our investments in UK shares and we will continue to monitor all the opportunities it creates

©2020 Albemarle Street Partners Ltd.
All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of Albemarle Street Partners, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by Albemarle Street Partners, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete, or accurate. Albemarle Street Partners shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. Albemarle Street Partners is a trading name of Atlantic House Fund Management LLP, which is authorised and regulated by the Financial Conduct Authority (“FCA”)