The below chart shows the growth of £1 invested in the UK market over almost 70 years and 17 different prime ministers. We can see that over the long term, the market has provided substantial returns, regardless of who’s in charge.
That’s because the companies of the world will continue to focus on serving their customers, growing their businesses and making a profit.
I wouldn’t be surprised if we see some volatility around the election, but so do many other factors—the actions of foreign leaders, interest rate movements, changing oil prices and technological advances, to name a few. That’s why you can see rises and falls in both Labour and Conservative governments.
The bigger picture is that stocks have rewarded disciplined investors over time—regardless of who has won high-profile elections.
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