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The Brexit “Groundhog Day” Continues

The Brexit “Groundhog Day” Continues

“Brexit Day” – 29 March 2019 – came and went, but the UK remained in the EU. The UK was forced to seek an extension to the Article 50 process as Prime Minister Theresa May failed to get her Brexit deal through the House of Commons for a third time. Mrs May warned that MPs’ decision to reject the deal had “grave implications” and commented: “I fear we are reaching the limits of the process in this House”, stoking expectations of a General Election. The Brexit date was postponed from 29 March to 12 April; and now several more key dates have entered the equation.

22 May
The final day on which MPs could pass a withdrawal deal and avoid holding European parliament elections.

30 June
The date past which May said she would not countenance the UK staying in the EU, and the day before MEPs must take their seats in the European parliament.

31 October
The six-month article 50 extension will expire.

Our View: We believe there is still no way to predict the outcome of these events, let alone their impact on investment markets. For our clients’ portfolios, we believe a continuation of a strategy of full diversification of asset classes, geography, markets, management styles and views is the best defence against such uncertainty, and to date has proved itself well.