Election 2010: How can your clients benefit whatever the result?

A Hung Parliament Markets dislike uncertainty and the key short-term effect of a hung parliament will be increased risk aversion. However, the traditional safe haven during such times of uncertainty, gilts, may come under pressure themselves with rising fears that of the UK suffering a downgrade in credit rating. This could lead to a rise in gilt yields and the concomitant fall in prices would be expected to have a knock on effect on the UK stockmarket. In such a scenario therefore, it makes sense to have your portfolio skewed overseas. The increased uncertainty could result in a f...