Why investors should not fear Brexit (or Scottish independence) uncertainty

Investors will lean to traditionally defensive assets

David Zahn, head of European fixed income at Franklin Templeton's Fixed Income Group, believes the heightened uncertainty that is likely to result from Scotland proposing a second independence referendum in light of Brexit could present some opportunities for investors.

The Scottish government's demand for a second independence referendum should not have come as a surprise to most observers.  But the timing could scarcely have been more awkward for Prime Minister Theresa May, who had been lining up to trigger Article 50 and begin Brexit negotiations. While it is by no means guaranteed that the UK government will grant the go-ahead for a second Scottish 'Indy Ref', we feel the prospect could contribute to the sense of uncertainty hanging over the whole Brexit process. Moody's warns Scotland exit could leave country facing junk rating But from an...