According to Bernstein which is one of the best respected research houses on the Wall Street stated that after the last week’s eventful British politics related to the developments around the Brexit, the United Kingdom had now become “un-investable” because of the uncertainties pertaining to Brexit.
On Friday, the Bernstein team which was led by Inigo Fraser Jenkins wrote a letter to the clients stating that the political developments of the United Kingdom are so unpredictable at the current moment that modelling them into a strategy of investment is impossible virtually.
Fraser asked that with the politics of the United Kingdom in the midst of the turmoil of Brexit what is meant to be done by the investors.
He further added that they think that the market of the United Kingdom is “un-investable” because of the domination by the political forces on the near term movement, and these are very tough to model.
The team also specified that it is not mentioning that the fundamentals of the United Kingdom are in such a bad shape that they are advising to refrain from investing.
They said that they are simply pointing out the fact that there is a political haziness which is making it very difficult for them in order to determine the movements of the asset prices.
The call of the Bernstein had come from its four utterly chaotic days in the European Union experiencing the politics.
On Tuesday there was a rumor that an initial Brexit deal has been secured by the United Kingdom with the European Union. This immediately affected the pounds and had it skyrocketing.
After 24 hours, the news was confirmed by the Prime Minister, however on Thursday, three members of the cabinet along with the Secretary Dominic Raab of Brexit announced that they were unsuccessful in backing up the deal of Theresa May.
Source: BusinessInsider, TechnologyBreakingNews
