Why investors should learn to love Labour

Article Abstract:

There is a traditional view in the United Kingdom that when the Labor party is in power, equities perform poorly, but, taking global developments into account, equities have perform better under Labor. Global developments such as a rise in petroleum prices in 1974, have affected equities world wide at times when Labor has been in power, but the UK All-Share index has performed better than the Dow Jones under Labor. The Labor government in power in 1998 is seeking to control inflation, and inward investment has continued during Labor rule, despite pound sterling being strong.

---

Carry on worrying

Article Abstract:

The UK Nov 1996 Budget received a reassurement reaction from the shorter-dated government securities (gilts) market. Share prices were more affected by Wall Street than by the Budget, following a warning from Yale University's Robert Shiller that prices could be stagnant for the ten years from 1996. UK share prices are vulnerable to a drop in US share prices. There is also concern that the governor of the Bank of England is likely to seek further rises in interest rates.

---

Juggling with the Blair factor

Article Abstract:

There are two factors relating to political risk that could affect the UK stock market. The first concerns the impact of elections on the market and and their impact on stocks and bonds prior to results of the election. The second concerns the impact of a possible Labor government and its policies. The impact of a Labor government could be favorable for equities since the party places emphasis on low levels of inflation and fiscal discipline.

Similar abstracts:

• Abstracts: What should regulators do about consolidation and electronic money? Bank mergers: what should policymakers do?
• Abstracts: Ethical investors kept in the dark. When green issues are not black and white. Investing on principle could be profitable
• Abstracts: Arabis: investors on the warpath. Tax boost for bosses on new bonus schemes. Boss slams top pay rules
• Abstracts: Fiscal responsibility code can't be policed. Gordon Brown's next big act. New Labour, old disappointment

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.