UK election: A time for pragmatic investing?

The combination of political risk and market volatility highlight how important effective stock picking and flexible investing will be for income managers, says Mark Wharrier, manager of the BlackRock UK Income fund

Politicians are omnipresent right now - as are rhetoric, posturing, and awkward photo calls. Uncertainty over policy changes, the make-up of a potential coalition, and a possible referendum on the country's future in Europe are likely to create more volatility - and opportunities. Take a business like Stagecoach. Its price has suffered, largely over concerns about what a potential Labour administration in particular might do to regulate the bus and rail industry in the future. In fact, its shares are now more than 20% lower than they were in December, despite a stable earnings outlook...