Hugh Albert Johnson, Chief Investment Officer, Founder, Partner, Hugh Johnson Advisors, tells ET Now. “If there is an orderly no-deal or a hold-up beyond March 29, then a positive fiscal and monetary strategy can be expected. UK economy might do a few bits better than the present assumption for violently 1.5% growth in 2019”.
What the next and what would Theresa be accomplished to put together as a saving grace.
True, that is right. Question is orderly or disorderly no deal, and the correct answer is that it is going to be a neat deal. But either way, whether they’re a no-deal result or a new referendum, you are talking about a hold-up beyond March 29th On balance, that has to be looked at as a justly positive.
There would be a positive reply in between pound sterling as well as from the British financial markets that will surprise everybody.
Do you think we are marching?
You have got to wait and watch and see what is going to happen. When we begin to see that the Labour Party will take over, that has significant implications for what fiscal strategy is going to look like as we move ahead. And you have to watch that. The no-confidence vote is a beautiful, important part of this whole process.
The fiscal strategy will not be beneficial in my judgment if the Labour Party replaces May and her conservative group. That is the 1st step. The 2nd step if we do get an orderly no-deal or a hold-up beyond March 29th then the question or our focus will have to turn to a merger of financial strategy.
I would expect that you would see many reductions in interest rates, trying to help things along and likely the Brits would modify or change the fiscal strategy.