Markets need positive vision of how to rebuild Britain

CONTRARIAN INVESTOR

So there we have it. A hung Parliament has been declared amid Greek-inspired panic on the markets, with equities plunging, and sterling on the receiving end of a thoroughly good kicking.

None of the above should come as any surprise to cynical investors. In particular, sterling in recent weeks has been looking uncharacteristically strong and that confidence is, I think, hugely indicative of the more important positive undercurrents. The truth is a hung parliament will absolutely not be a short-term disaster in financial terms – a note from Lombard Odier summed up the encouraging precedents, noting: “The only three instances of sharp budget cuts, outside of war periods, occurred in 1920/1 ...