With plenty of questions still up in the air over Brexit, it seems inevitable that 2019 is going to be a challenging year economically. The whole deal or no deal saga seems to have been going on forever and is casting a long shadow over the UK economy. It is easy to fall into the trap of thinking it is all politics and has little impact on your daily life. However, if you have savings and investments in the form of an ISA, stocks and shares or even property, you need to think now to ensure your wealth is protected and working as effectively as possible for you over the year ahead.
The Brexiteers are figuratively pulling up drawbridges around the country, and the impact on UK businesses, as well as on sterling, is likely to be significant, at least in the short term. But while ripples from Brexit will be felt across the EU and elsewhere, the rest of the world will continue largely unaffected.
Thinking globally with your investments is therefore a wise precaution. The first things to look at are investment ISAs from Wealthify that focus predominantly on FTSE-100 stocks. Most businesses in the top 100 are global in outlook, but obviously, it makes sense to avoid those that have too much of a domestic focus, for example UK housebuilders and banks. Stocks like BP, GlaxoSmithKline and Royal Dutch Shell, on the other hand, will be largely immune to whatever happens in the UK economy.
As a rule of thumb, the harder the Brexit, the bigger the hit Sterling is likely to take. That sounds like bad news for investors, but only if your investments are tied to the pound. Those with commodities in their portfolio could be sitting pretty, as these are priced in dollars, meaning that post Brexit, their value is likely to surge in Sterling terms.
Those with a little more to invest have been flocking onto the buy to let scene over recent years. Who can blame them? Property is one of the few forms of investment that has been able to ride out whatever the UK and global economies have thrown at it, and has continued to generate healthy yields in challenging times.
There have been signs over the past 12 months that the market might have peaked, however, with London prices, in particular, taking a hit. Economists are placing the blame on Brexit uncertainty, so does that mean a crash is on the horizon? Neal Hudson from Residential Analysts thinks it is a distinct possibility and says a no-deal Brexit would be “disastrous” for the housing market.