As we get closer to the end of April 2019, I am sure that we all expected things to be clearer about who will be the winners and losers over Brexit.
However, one factor that remains is the fact our commerce is dominated by capitalism; so we can assume that where there is a profit, people will trade, even when there are barriers in the way. The United Kingdom is a significant player on the world’s stage, so there will be interested parties for trade after Brexit, although we must all expect uncertainty in supply, cost and availability.
In the longer term, we at Martin-Redman Partners, expect everything to find a new equilibrium; capitalism will push all economic parties to find the best compromise for themselves. After a period of turbulence, we will return to some form of new relationship, which may be better or worse than we are now.
Some areas of the economy are likely to be impacted more than others; vehicle manufacturing has already been singled out as its “Just In Time” inventory systems will suffer with customs restrictions and variable tariff rates. As the UK is a net importer of food, restrictions and greater customs checks will have an impact around the country. It is hard to imagine supermarket shelves empty of food, but it is likely that there may be less choice until a new equilibrium is found.
For financial services, the interactions with Europe are many fold, but in the short to medium term changes to retail financial advice will be limited as the regulatory framework will remain. Companies with permissions in several countries will need to make provisions, but changes will not happen overnight.
How we are managing Brexit uncertainty for our Clients
For our clients investing in our range of investment portfolios via their pensions, ISAs and other products; we do not expect to make any drastic changes at this point. All of our investment portfolios are designed for the long term and to manage overall volatility and many of them have an exposure to worldwide investments, so have some shield against UK/EU difficulties.
If your circumstances are changing or you are uncomfortable about any particular aspect of your portfolio, feel free to contact me to discuss this further at sja@martin-redmanpartners.co.uk
To read more on this issue click here