While the prospect of the Labour Party returning to government in the UK for the first time in 14 years might raise a few eyebrows in the financial markets, we wouldn’t put much store by the fact that some of its times in office since first forming a government a hundred years ago coincided with slumps in sterling, UK equities, and Gilts. And, whatever your view of history, we doubt the Labour Party’s return to power would be a big deal for investors this time around.
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