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Hung Parliament could stymie investment decisions | Trustnet Skip to the content

Hung Parliament could stymie investment decisions

11 March 2010

Forty one per cent of investment recommendations and choices could change following a hung Parliament, results of a Trustnet survey suggest.

By Jonathan Boyd,

Editor-in-chief, Financial Express

A poll conducted by Trustnet on the effects of a hung Parliament following the General Election has found 41 per cent of respondents feel it would affect their investment recommendations or choices.

This is the proportion of respondents to the poll – users of Trustnet - who answered 'Yes' to the question: Would a hung Parliament affect your investment recommendations or choices?

Some 47 per cent answered 'No', with the remainder, 12 per cent, 'Undecided'.

The findings are a stark reminder of the stakes seen – unusually for investors – in the outcome of this year's election.

Investors usually discount the effects of national politics on their investments. For example, many investments are intended to run beyond the typical lifetime of a Parliament.

Also, regulation of investments is increasingly beyond the scope of Westminster, with battles taking place at the European level on matters such as rules for hedge funds. A change in government in one EU member state would have little immediate impact as such.

One issue that is still the preserve exclusively of the UK is its national debt. Economists and professional investors – fund mangers – have been expressing increasing concern over the lack of detail presented by both major UK political parties to cut the debt and reduce ongoing deficit spending.

Currency markets have already voted, sending the pound sharply lower in recent weeks. Meanwhile, yields on the 10-year gilt have been rising.

Weekly poll results

Q. Would a hung Parliament affect your investment recommendations or choices? 
Answer %
 Yes  40.99
 No   47.06
 Undecided   11.95

Source: Trustnet. Poll conducted 1-7 March 2010. Respondents numbered 544

Trustnet's next poll is open and can be accessed via the website's homepage.

This week’s question is: Which region holds the most promise for the year ahead?

Answers include the UK, Europe, North America, Asia Pacific, Latin America, and Middle East - North Africa.

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