Politicians' intervention has made some UK market sectors "political football" and risk is not being priced in to equities, argues veteran manager Martin Cholwill from Royal London.
With the UK going to the polls in 14 months, politics and markets will become increasingly intertwined during the extended pre-election period. Political football Ed Miliband’s proposals to freeze gas and electricity prices in the event of an election win have already caused the energy sector to become a political football, with other sectors expected to follow suit. But increasing political risk is not currently priced in to many stocks, while any business reliant on government subsidies may be subject to intervention. Politicians tend to be rather more transitory than th...
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