Election called because 10yr Brexit slowdown beckons says City expert


Originally published at: https://whichinvestmenttrust.com/election-called-because-of-10yr-brextit-slowdown-beckons-says-city-expert/

Columbia Threadneedle investment boss believes Theresa May is calling the election before more evidence of a slowdown in the UK economy emerges later this year, and he also shared his view on just how long the UK economy could suffer from Brexit, and it is shockingly long. Mark Burgess, head of equities and the Chief…


I voted for Brexit but I am concerned now that we will experience a recession. I don’t how long this will last for, so five to ten years would awful if it came to pass. I hope and in fact my expectation, is it won’t be that bad, but then again, I am a bit of an eternal optimist.

I saw an economist on Newsnight who pointed out the elephant in the room in this election which is that the UK economy is still rests upon consumer debt, rather than on investment led growth.


It is true that the UK is still overly reliant on the indebted consumer, which is unsustainable, because you don’t get out of debt by borrowing more.

The German consumer by contrast is much more unlikely to even own a credit card. Their economy has a much more even spread between investment led growth and consumption.

As for this election, it is looking like a coronation.