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Brexit Set to Create Opportunities for Investors Says Neill Woodford

One of UK’s most highly-regarded fund managers, Neill Woodford, urged investors to look beyond the initial market turmoil and period of uncertainty that followed the UK’s vote to leave the European Union and to focus on long-term opportunities.

One of UK’s most highly-regarded fund managers, Neill Woodford, urged investors to look beyond the initial market turmoil and period of uncertainty that followed the UK’s vote to leave the European Union and to focus on long-term opportunities.

Neill Woodford, who rose as one of Britain’s best performing fund managers while in charge of the Invesco Perpetual Income Fund and is also a distinguished investor of online hybrid estate agency Purplebricks, shared his views on the implications of Brexit on the UK’s economy through a blog post on his company website.


Describing Britain’s decision to leave the European Union as “shocking” for markets, Woodford argues that Brexit is “not as negative a development as the market’s initial reaction appears to imply “as he believes the UK economy will actually benefit from a Brexit.


When looking at the short-term effects of Brexit, Woodford claims that markets are likely to continue “responding negatively to uncertainty” as “the exact terms of Britain’s exit from Europe are negotiated”.


This period of uncertainty, Woodford views as unlikely to persist over the long-term as he explains in a separate comment: “UK GDP will be lower over next 18 months or so than if we had voted to remain” but due to the temporary inflation caused by the fall in the sterling pound, in the long-term, “nominal GDP will be little changed”.


He continues saying that “exporters will enjoy something of a windfall” as “growth in consumer cash flow will be marginally lower” due to a rise in fuel prices.


On a final note, Woodford believes that “trajectory of the UK economy, and more importantly the world economy, will not be influenced significantly by (the referendum’s) outcome.”


And despite this “headwinds” causing market conditions to be unsettling, Woodford urges investors to “look through this period of uncertainty and focus on the long-term opportunity which, in [Woodford Funds’] view, continues to remain attractive.”


Woodford’s claims are reflected in our initial analysis of the market post-Brexit, which states that Britain’s decisions to leave the EU should not necessarily be a cause for concern for the property market. And that, both domestic and international investors will continue to view the UK Market favourably in the long term as limited supply and high demand continue to drive the market forward.

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