Close election battle will hurt stocks

The prospect of a close election outcome in Britain bodes ill for equities if history is anything to go by.

The prospect of a close election outcome in Britain bodes ill for equities. Market historian David Schwartz notes that there have been five elections in the past 50 years when the winner's majority was under 20 seats.

The FTSE All-Share index slid in the six months before the vote on four occasions, with an average decline of 15%. Nine other polls produced a majority of at least 20 seats. Before eight of them, shares gained an average of 15% in the prior six months.

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