Brexit could boost FTSE 100 share prices, according to 42.4% of 170 financial advisers who took part in a PFS poll in January.
Roughly one in five financial advisers (22.9%) said Brexit will not boost FTSE 100 share prices, and approximately a third (34.7%) were unsure what the UK exiting the European Union will mean for investors in the index.
Keith Richards, chief executive of the PFS, said: “The Conservative Party’s general election victory sent the FTSE 100 to its best day in a year, with analysts hailing it the ‘Boris Bounce’.
“The majority of the FTSE 100’s profits come from outside the UK. A weaker pound is beneficial for some British companies that sell their products or services outside of the UK, as it allows overseas buyers to get more for their money.
“If the value of the pound falls further, many FTSE 100 companies should therefore receive a boost and, in theory, this should push the share prices up, acting as a hedge against Brexit uncertainty. However, we need to remain mindful that a Brexit deal with the European Union has yet to be struck, and any economic optimism we currently feel may be misplaced.
“It is vital that investors speak to a financial adviser to ensure their investment portfolios are capable of meeting
their needs.”
