Regular readers will know I have a tendency to look for the downside in most investment situations. But from an investor's point of view, it's very hard to be anything other than deeply relieved about last week's general election result. Regardless of who you voted for, you have to accept that the outcome delivers on the thing that markets crave more than anything else some certainty.
We now know that the UK isn't about to embark on a campaign of wholesale renationalisation. We now know that most voters aren't naive enough to look at a seemingly endless list of electoral bribes and simple solutions to complicated problems without wondering about the credibility of those making the promises. And we now know that whatever else happens, Britain will leave the European Union (EU), thus showing that our democracy is not broken as many have claimed in the last few years, but in fact working pretty much as it is supposed to ie, facilitating change in power structures without the need for violent revolution.
There's always plenty to worry about
There's no way of knowing. But on the upside, Britain even after the post-election bounce still looks cheap relative to other markets. So if you've been avoiding the UK because of Jeremy Corbyn or the Brexit chaos, now looks a good time to bring some of that money back home for some ideas on how to do it, see this week's cover story.
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That said, don't bring too much of your money home too many investors have too much cash invested in their own country and if you do stick to the UK then you'll miss out on the opportunity to invest in some of the fantastic ideas dished up by our regular contributors in this week's magazine. Our editor, Andrew, reckons Poland is looking good. Our columnist Mike takes a closer look at biotechnology. Crislooks at Singaporean real estate, while Richard checks out a cheap global consumer goods company and that'sjust a handful of the ideas they've comeup with.
Next week's special New Year double issue features one of the best roundtable discussions we've had yet. Meanwhile, a very Merry Christmas to you all.
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Beat the cost of living crisis – go on holidayEditor's letter As inflation rages, energy bills soar and the pound tanks, what’s a good way to save money this winter? Go on holiday, says Merryn Somerset Webb.
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How capitalism has been undermined by poor governanceEditor's letter Capitalism’s “ruthless efficiency” has been undermined by poor governance, a lack of competition and central banks’ over-enthusiastic money printing, says Andrew Van Sickle.
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Don't be scared by economic forecastingEditor's letter The Bank of England warned last week the UK will tip into recession this year. But predictions about stockmarkets, earnings or macroeconomic trends can be safely ignored, says Andrew Van Sickle.
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The biggest change in the last 17 years – the death of the “Greenspan put”Editor's letter Since I joined MoneyWeek 17 years ago, says John Stepek, we’ve seen a global financial crisis, a eurozone sovereign debt crisis , several Chinese growth scares, a global pandemic, and a land war in Europe. But the biggest change is the death of the “Greenspan put”.
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The wolf returns to the eurozone’s doorEditor's letter The eurozone’s intrinsic flaws have been exposed again as investors’ fears about Italy’s ability to pay its debt sends bond yields soaring.
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Things won't just return to normal – that's not how inflation worksEditor's letter You might think that, if inflation is indeed “transitory”, we just need to wait and everything will return to “normal”. But this is a grave misunderstanding of how inflation works, says John Stepek.
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Car hire and the strangeness of the post-pandemic economyEditor's letter A global shortage of hire cars and unusually high hotel occupancy rates sum up the post-pandemic global economy in a nutshell, says Merryn Somerset Webb, with enhanced demand meeting restricted supply.
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Why we need to get a grip on our governmentEditor's letter Our government is trying to do too much, enacting policies that are destructive to the private sector. It needs to drop the the feel-good nonsense and create policies that lead to long-term wealth, says Merryn Somerset Webb.
