Speculators make hay while the sun shines
Investments speculators around the world are set to make "hay while the sun shines" amid uncertainty in UK investment markets regarding the shape and size of the next government. Market observers have been demanding a resolution to the government issue before markets open on Monday morning but this is highly unlikely and we could be in for a "Red Monday".
It is known that many speculators are already lining up to hit UK markets with shortselling on Monday if no agreement can be reached. At this moment in time it has to be said that while we may see a positive announcement from the Conservative/Liberal Democrats parties tonight we are unlikely to see a formal coalition emerge over the next 24 hours. Quite how the politicians will look to steady UK investment markets in the short term remains to be seen but something needs to be done and needs to be done now.
As if the UK economic recovery was not fragile enough, political uncertainty and potential horse-trading of policies between the various parties will do no good for investor confidence in the short to medium term. For the moment we have to sit back and watch the situation develop but hopefully it will be far quicker than the European Union bailout of Greece!
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