Brexit sabbatical drawing to a close

If you have been enjoying the respite from incessant Brexit headlines over the past few weeks, I’m afraid it’s bad news. This week’s fall in the pound to a three-month low of $1.28 reflects Brexit creeping back onto investors’ radars. And even if a Brexit deal is reached this year, we think the pound and UK equities are in for a tough time over the remainder of 2019. That’s because we think the global economy will perform worse than investors expect, leading to a fall in investor risk appetite.