What should I look out for with my investments?
The FTSE 100 index of the biggest companies in the UK has risen since the EU referendum result in 2016, although not without experiencing some significant dips. It climbed from 6,138 on 24 June, 2016 to 7,424 a year later, boosted by the fall in value of the pound which made companies in the index more competitive.
There were fluctuations in the period since then until there was a sharp fall in March 2020 as the COVID-19 pandemic hit share prices.
But if you have a diversified portfolio of investments, Brexit may not have a significant impact on your portfolio. Either way, sticking with a long-term approach is key with any kind of investments, especially during times of economic uncertainty.
Will Hobbs, Chief Investment Officer at Barclays Wealth and Investments, explains
“A Bank of England study from a few years back found that around 90% of the variation in UK stock prices can be explained by factors external to the UK economy. There are some caveats to make here all the same. The further down the size spectrum you go, the more of a role the UK economy tends to have.
“With regards to Brexit specifically, there is potentially a case to be made that many international investors have preferred to leave the UK alone or run lower exposures over the last few years. If there was to be a trade deal with the EU, we could see some correction of this underweight position – if indeed it exists.”
Past performance of investments is not a reliable indicator of their future performance. The value of your investment can fall as well as rise.
Read our guide to the impact of Brexit on investments.
Listen to the ‘Word on the Street’ podcast from Barclays Wealth Management for the latest updates on Brexit and financial markets.
The information contained in this article is for general information purposes only and is not intended to constitute financial advice. Please seek independent professional advice relevant to your circumstances. Barclays does not accept any liability for any losses as a result of relying on the information contained in this article. All opinions and estimates are given as of the date of publishing.
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