We have had one or two phone calls from customers worrying about the forthcoming referendum in Scotland.
In our opinion it will make little difference to stock market valuations, with the exception of businesses listed on the London market who are located north of the border, such as Standard Life.
The biggest impact may well be on the value of Sterling, which is now falling on the foreign exchanges. We don’t see this as an issue unless the currency goes into freefall (which is very unlikely) as a drop in the value of sterling boosts the value of overseas investments, which usually make up a considerable part of most customer’s portfolios.
A reduction in Sterling’s value is also good for our export businesses, as it reduces the overseas price of the goods and services they sell abroad.
At the end of the day, whatever the outcome of the referendum, I don’t think the impact will be significant.
Please call if you have any queries or concerns.
