Many UK employees have heard the bad bits of the recent budget by now, but there is some good news. Significant capital was withdrawn from UK portfolios in anticipation of a possible “wealth tax” that never actually materialised. If that money returns and is re-invested, it will boost UK assets & portfolios higher.
Also, UK investors are not heavily investing in UK assets anyway (due to global diversification). UK markets are more sensitive to international investor sentiment, which tends to be more positive than domestic sentiment. Even if UK investors feel gloomy about the UK outlook, international investors still see the UK as a better destination than many other geographic options, and far better than The Donald’s USA. This could also provide some well needed increases to UK funds.
As always, talk to your adviser to discuss your own risk appetite.