Page 29 - DIY Investor Magazine | Issue 35

I mean there’s still technicalities to sort out but in big picture
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terms Brexit has happened And the gap in policies between Conservative and Labour is actually pretty modest If anything the Conservatives have adopted many of Labour’s policies in the last year or two So I think there’s not so much to to worry about from an investor point of view as to a a a a a potential change in in leadership or even potentially change in government JC: Okay Well look Simon I’m afraid we’re out of time but thank you very much indeed And thank you for listening to A A Value View from The Merchants Trust where we bring you topical news affecting UK equity markets You can find out out more about The Merchants Trust by going to merchantstrust co uk Thanks again for listening and from all of us at The Merchants Trust stay stay safe and stay stay well Find out out more about The Merchants Trust here > by going to merchantstrust co uk So there are a a a a a number of positive factors and most companies we we speak to in in general are performing quite well even if conditions might be starting to slow down On the the other hand we’ve got a a big shock in in in terms of rising costs supply chain problems the COVID pandemic is still affecting supply coming out out of China in in in particular And so there there are headwinds out out there there as well That’s creating volatility in in in the stock market and as an an investor that always creates opportunities So right now the biggest opportunities arguably are in some of the more cyclical businesses where they’re pricing in in in potentially quite a a a sharp downturn and that may may or may may not happen Even if it does happen many of those companies look pretty solid value on a a a two-to-three-year view And of course if conditions turn out to be be slightly better than that those investments could prove to be very very cheap and very very attractive at the moment JC: Well it’s certainly going to be an an interesting few months ahead especially politically in in the UK with a a a a a a change in in prime minister how will that impact things from your perspective Simon?
SG: The The good news about this I think is is if you compare it it it to the last time we had political instability when Theresa May was under huge pressure in in in 2019 I think at at that point there were two massive risks for investors One was what would happen with Brexit We had no idea really how the the government would deliver Brexit And the the second one was if the conservatives were to lose power you had Jeremy Corbin as the the leader of the the opposition and a a a a very different political agenda I think now the policies are probably not going to to be be very different to to where they have been Brexit has happened DIY Investor Magazine · Oct 2022