Five views on a ‘no deal’ Brexit
By Sebastian Cheek, Kristen McGachey and Jessica Tasman-Jones, 3 Aug 18
Experts look at how investors can position themselves if the UK crashes out of the EU
“We continue to be underweight UK equities from a European or global context,” said Hermes IM’s Dudley.
“A no-deal Brexit is likely to further curb growth expectations and therefore the attractiveness of the UK.
“Business disruption from technology continues to be a key theme and we believe that opportunities that are presented following Brexit, including people relocation questions, could lead to more rapid change in digitalisation/automation, optimising manual tasks to seek cost efficiencies and reinventing industries.
“Broadly our expectation is that we are likely to see higher costs for businesses, at least in the short term as effort is duplicated (in and out the EU). UK businesses that are required to trade with the EU may find the hurdles too great and therefore reduce their need (if possible), or lessen their continental ambition (either raw material sourcing or customer growth).”
Tags: Abrdn | Chase De Vere | Federated Hermes | Old Mutual | Rathbones
