• CALL 01908 592544
  • Schedule a call
RTS Financial Planning
  • About Us
  • Services
    • Financial Planning
    • Protection Planning
    • Retirement Planning
    • Pension Planning
  • Our Process
  • News & Views
    • Blog
    • Videos
  • Contact Us
Select Page

How Different Governments Affect Your Investments

May 23, 2019 | Blog, Financial Planning

Let’s face it, the current government is getting into a bit of a pickle over Brexit and it’s probably going to cost them dear at the next General Election. So I thought I would take this opportunity to look at how different governments affect your investments.

Who’s best for investments, Conservatives or Labour?

For some time now all we have known in the UK is a two party system, Conservatives or Labour. It’s usually one or the other that gets into government.

Now there is a common perception that the Conservatives are generally good for business, stock markets and investments and that Labour tend to be bad.

In fact I have spoken with a number of high earners and business owners over the last year or so who are terrified at the thought of Jeremy Corbyn getting into power. But should they be?

Let’s look at the facts.

The table below shows the performance of the UK stock market (FTSE All Share index) during every government since 1963 up until the end of 2018.

Came To Power Party in Government Prime Minister UK Stock Market Return
11th May 2010 Conservatives David Cameron and then Theresa May 33.57%
2nd May 1997 Labour Tony Blair and then Gordon Brown 28.44%
4th May 1979 Conservatives Margaret Thatcher and then John Major 654.79%
4th March 1974 Labour Harold Wilson and then James Callaghan 106.08%
19th June 1970 Conservatives Edward Heath 8.36%
16th October 1964 Labour Harold Wilson 18.95%
19th October 1963 Conservatives Alec Douglas-Home 2.43%

Data sourced from Telegraph/Fidelity https://www.thisismoney.co.uk/money/investing/article-2306957/Thatcher-The-Prime-Minister-stock-market-league-surprise-Labour-star.html 10/04/2013 & Google Finance.

What’s striking is that the UK stock market return was positive at the end of each period of government. This means had you invested at the start of each government or just held on to your money all the way through your investments would have increased in value.

In fact even if you break it down by individual Prime Minister, the only Prime Minister to suffer an overall loss was Gordon Brown. To be fair to poor old Gordon he did leave during the financial crisis!

So the evidence shows that actually it really doesn’t matter who comes to power. Business is business and the great companies of the UK will do their thing and power through. Yes there are blips and falls along the way but over the long term the UK (much like the world) continues to advance and therefore investing in this advance is the only true way to build wealth.  

If you would like to ensure your investment portfolio is built based on evidence, risk control and a platform that will give you the best possible chance of achieving your lifestyle objectives then please get in touch for a no obligation chat at our expense.

Schedule a call

Risk warning:

Stock market linked investments and any income from them, can fall as well as rise and is not guaranteed. Any figures quoted are for illustrative purposes and should not be taken as a forecast or guarantee. Past performance should not be seen as an indication of future returns and clients may get back less than they have invested.

Tags: Conservatives, FTSE All Share, Governments, Labour, stock market

Recent Posts

  • Should I Make Changes To My Investment Strategy?
  • When You Don’t Pay Tax In Retirement
  • Pension Increase Exchange (PIE)
  • Is Now The Time To Secure Your Pension Income Based On Annuity Rates Today?
  • Does Your Family Medical History Really Impact Your Life Expectancy?

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017

Categories

  • Blog
  • Business Planning
  • Financial Planning
  • Pension Planning
  • Protection Planning
  • Retirement Planning
  • Video

Customer Reviews

Reviews and Ratings for Financial adviser Carl Roberts, Milton-Keynes
  • Home
  • Regulatory & Company Information
  • Privacy Policy & Cookies
  • Sitemap
  • Contact Us

© Copyright RTS Financial Planning | Milton Keynes | Design and build by Juicy Marketing

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie SettingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT