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UK Investment Markets: Weekly Update – April 1st 2019

On April Fool’s Day it’s hard to imagine anyone is in the mood for pranks considering the level of idiocy Parliament has recently stooped to. While maintaining her stance there will be no second referendum, Theresa May is quite happy to bring her uniformly despised withdrawal agreement back to MPs for a FOURTH “meaningful” vote, (a term that sets the hackles rising for most of us). Needless to say, the people are not happy and whether a Remainer or Brexiteer, we have all completely lost faith in the democratic process in our country.

Welcome To *Another* Crunch Brexit Week

If the 2016 Brexit Referendum result had been honoured, this would have been the UK’s first full week outside the European Union. But after nearly three years of infighting, division and political paralysis, the deadlock over Brexit rumbles on.

This week is another crucial one in the process. With rumors of a looming general election, the prospect of yet another meaningful vote, and a series of indicative ballots in the House of Commons, things might be a lot clearer in a few days’ time. Then again — they might not.

Lawmakers will get the first opportunity to negotiate a way out of Britain’s deepening political crisis. Today they’ll hold a second round of indicative votes, hoping to coalesce behind a Brexit plan that could rival Theresa May’s and force the PM into a compromise.

Options that MPs could vote on will likely include a Customs Union plan and a second referendum — and while the ballots are not legally binding, a united show of support would be difficult for Downing Street to ignore.

Another round of indicative votes could take place on Wednesday, but reports suggest that Theresa May is also planning to find time this week for yet another so-called meaningful vote on her Withdrawal Agreement. That divorce deal has already failed in the Commons three times, by majorities of 230, 149 and 58.

And in case that wasn’t enough Westminster drama for one week, rumors also abound that May could call a snap general election to break the deadlock. The last time she tried that, in 2017, it backfired spectacularly — with May losing her majority in Parliament.


There is still no likelihood of any stability in the near future neither in the UK or the EU. With the focus on the UK, it is easy to ignore the mess that the EU is in economically and how the sudden withdrawal of Britain’s investment will impact it even more. From an investor’s point of view, it’s almost too risky looking for opportunities anywhere at the current time.

However, that can sometimes be a very narrow view to take as there are always anomalies when there’s economic uncertainty. In fact, when there’s market volatility, more millionaires are created than at other times in economic cycles. That said, it is definitely not a time to be greedy in terms of expecting high returns without any risk exposure. These opportunities seem to exist everywhere but they are absolutely worth avoiding, particularly if you are investing for a particular milestone such as buying a home, funding university or retirement.

At Investor Live, we are always looking for the kind of anomalies that represent safe and sound investments when there’s any kind of instability. From my point of view, it is important that the opportunity to cherry-pick exciting investments with a low-risk profile is not restricted only to those with bulging bank accounts. I represent the “normal” investor and on that basis, any recommendations I make are purely based on independent judgement.

Fixed income opportunities that are backed by tangible assets are the safest possible option for your investment strategy at the current time. You want to be sure you’ll be receiving a determined amount back for your investment and that there’s something underpinning it of significant value. One of the things to consider is not how much the asset you’re invested in is worth but how much of it is owned by the issuer behind the investment opportunity.

Investment over the short-term is always a better idea when markets are volatile and there are a few opportunities to enter the British hotel and hospitality sector for 1- to 2-year terms. One such opportunity comes from Liverpool-based hotelier Signature Living which has a proprietary investment vehicle called a Secured Partnership Investment (SPI). You can find out more about how to invest in this award-winning hotel brand that is rapidly expanding its portfolio of heritage hotels by contacting Investor Live.

About the Author

Amanda Wright is a former risk analyst at Bankers Trust, with specific experience of mergers & acquisitions and corporate finance. As a contributor to Investor Live, Amanda provides valuable insights into the technicalities of fundamental analysis in a way that is easy to understand, to provide retail investors with the tools to make considered investment choices.