Sell in May?
I don’t know how others are finding the BREXIT debate however I seem to be inundated with entreaties via the news, social media and my professional bodies. Last night I attended an Institute of Directors (IOD) debate where the platform speakers passionately gave their viewpoints in an often rowdy debate. The voting slips showed beforehand 40% in, 37% out and 23% uncertain. The leaving pole gave a victory to the out campaign by a wide margin.
Clients will know that this firm is a passive orientated investment house. We believe that asset allocation accounts for 90% of the returns from investments. As a general rule we would never recommend coming out of a market because the timing of coming out (and more importantly going back in!) is critical to the day meaning if you take the gamble you could lose out spectacularly.
Having said all of the above, we can draw some conclusions with regard to the effect of the UK European Membership Referendum and we have therefore produced an investment update for clients which can be found HERE.