'Brexit will cast a shadow for years to come': What is the outlook for the UK heading into 2019 and beyond?

Divided nation

Industry commentators have warned the uncertainty around the Brexit negotiations mean investors should continue to be looking to allocate away from the UK next year.

'Uncertainty' remains the key buzzword for the UK's outlook as nothing will be concrete until 29 March 2019 when the country leaves the European Union. The FTSE 100 is down 8.2% so far this year to 18 December while the FTSE All-Share has fallen 9.1% versus returns of -1.5% for the MSCI All Country World and 2.2% for the S&P 500.  Furthermore, the IA UK Smaller Companies sector is the third worst performing sector this year dropping 10.6%, while the IA UK All Companies has declined 11.5%. Karen Ward, chief market strategist for EMEA at J.P. Morgan Asset Management, has argued even ...