Post-Election: Time for investors to go global
Now the UK’s General Election is over, the real hard work starts for Prime Minister David Cameron.
But despite the Conservatives’ majority being met with a sigh of relief by investors, I suspect this may be ‘the calm before the storm’, as I was quoted as saying by The Financial Times and CNBC.
The in-out referendum on Britain’s membership of the EU is now a reality, and as I was mentioned as saying in the Wall Street Journal’s Market Watch and the Daily Mail, this could result in several years of uncertainty in the markets, so investors must safeguard against a fall in value of UK assets.
One way they can do this is by having more exposure to overseas investments. UK-based investors, I believe, must now look into international stocks, bonds and perhaps property to move away from domestic markets and think global.
With regards to taxation, in my view Mr Cameron must take a bold approach. The promise to cut income tax is the right way forward and will allow for the working population to keep more of their hard-earned money for themselves and their families.
I was cited in IFA Magazine that, on the same note, the Prime Minister must maintain the Tories’ pledge on inheritance tax. As one of the most despised taxes, as it takes the form of a double taxation, it was only ever supposed to be paid by society’s highest earners. However, as I stated in the Financial Reporter, more of the so-called ‘Squeezed Middle’ are being pulled into the IHT net.
When it comes to pensions, I fully expect newly-elected MPs as part of the Prime Minister’s cabinet reshuffle to again reassess the pensions landscape. However I cannot stress enough that introducing more changes now will be detrimental.
As mentioned in Money Observer, it is my view that pensions must be left alone. By adding even more complex modifications to the system, the appetite for saving will be further encumbered and affect people’s retirement goals, not to mention the country’s future economic growth.
The state pension, public sector pensions and company pensions have experienced monumental change over the last five years, particularly the most recent pension reforms. Therefore, should the subject of pensions again become a political football, the concept of saving for retirement could be seriously weakened.
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