{"id":161972,"date":"2019-12-17T09:00:35","date_gmt":"2019-12-17T14:00:35","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=161972"},"modified":"2019-12-17T07:12:44","modified_gmt":"2019-12-17T12:12:44","slug":"boris-johnson-could-spook-financial-markets-in-2020-investors-cautioned","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/boris-johnson-could-spook-financial-markets-in-2020-investors-cautioned\/","title":{"rendered":"Boris Johnson could spook financial markets in 2020, investors cautioned"},"content":{"rendered":"
December 17, 2019<\/div>
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By George Prior<\/strong><\/p>\n

Boris Johnson could spook financial markets in 2020 and investors must avoid complacency, warns the CEO of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The warning from Nigel Green, chief executive and founder of deVere Group, follows the landslide victory for Mr Johnson\u2019s Conservative party in the UK\u2019s general election last week in which he secured an 80-seat majority, and as stocks rose across Europe on Monday.<\/p>\n

The Queen will officially open Parliament on Thursday, outlining her new government’s legislative programme.<\/p>\n

It is expected that the Withdrawal Agreement Bill on leaving the EU could be put before lawmakers as early as Friday.<\/p>\n

Nigel Green affirms: \u201cThe decisive win for the Conservatives triggered one of the pound\u2019s biggest ever rallies, the FTSE 250 index of UK shares climbed by 3.6 per cent and the FTSE 100 rose 1.3 per cent.<\/p>

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\u201cOn Monday, European stock markets reached all-time highs.<\/p>\n

\u201cThis has been driven in part by investors\u2019 relief that a hung parliament had not been delivered, meaning years of uncertainty and indecisions over the UK\u2019s way out of the EU is coming to an end. Also, perhaps, because the Conservatives promised a more pro-business agenda.\u201d<\/p>\n

He continues: \u201cBut Boris Johnson now has the daunting task of turning his powerful election campaign slogan of \u2018Get Brexit Done\u2019 into reality.<\/p>\n

\u201cWhen Britain leaves on January 31, there will be only 11 months to thrash out the basics of the future relationship with the European Union.<\/p>\n

\u201cThe self-imposed end of December 2020 deadline is a mammoth challenge or Britain will fall through the \u2018trap door\u2019 of no-deal Brexit on January 1 2021.\u201d<\/p>\n

The Prime Minister could request another extension for the transition period.\u00a0 The government has until 1 July 2020 to agree with the EU a one-off extension, until the end of 2021 or 2022.<\/p>\n

But, says Mr Green, this is unlikely. He notes: \u201cI don\u2019t believe that Johnson will use his significant majority to slow down or soften – the Brexit process.<\/p>\n

\u201cInstead, his assumption from the election outcome will be that people want quick, easy answers.<\/p>\n

\u201cIndeed, in an interview on Sunday, Michael Gove guaranteed that the Brexit transition period will not be extended.\u201d<\/p>\n

He goes on to add: \u201cThe task ahead is monumental. The time frame in which to complete it is narrow. Failure to agree a free trade deal by the end of next year will mean the UK crashing out of the EU and all the far-reaching negative economic implications, including the likelihood of a recession.<\/p>\n

\u201cWith such uncertainty, following the election bounce, in 2020 investor confidence in the UK is likely to remain subdued and Boris Johnson\u2019s Brexit stance could be a major source of volatility in financial markets.\u201d<\/p>\n

The deVere CEO concludes: \u201cDespite the markets currently surging, investors must avoid complacency.<\/p>\n

\u201c2020 promises to be a year in which political factors \u2013 including Boris Johnson\u2019s Brexit plan and the U.S. presidential election, amongst others \u2013 could potentially spook markets.<\/p>\n

\u201cInvestors should assess and, where necessary, rebalance their portfolios to take advantage of the potential opportunities and to mitigate the risks.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior Boris Johnson could spook financial markets in 2020 and investors must avoid complacency, warns the CEO of one of the world\u2019s largest independent financial advisory organizations. The warning from Nigel Green, chief executive and founder of deVere Group, follows the landslide victory for Mr Johnson\u2019s Conservative party in the UK\u2019s general election […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-161972","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=161972"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161972\/revisions"}],"predecessor-version":[{"id":161973,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161972\/revisions\/161973"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=161972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=161972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=161972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}