Fight Electioneering Accept Recovery

The stock market adage to "Sell in May and go away, don't come back until St Leger's day" is one that will no doubt be used again this year. However, with the general election campaign under way, the phrase may have more relevance now than in May.

Electioneering seemed to gain some kind of momentum over the weekend, with both Labour and the Conservatives addressing gatherings of their party faithful accompanied by a series of television interviews and opinion polls. The effect, as far as the markets go, was to create more uncertainty. Another old investing adage is that “markets climb a wall of fear”, but the real fear is this uncertainty as to whether one party or another will gain enough votes to form out an outright government. It is dangerous to read anything into election polls – just ask Neil Kinnock – but it seems likely...