JPMorgan Is Neutral on U.K. Assets, Sees Soft Brexit Deal

The video discusses the potential impacts of Brexit on goods and services, emphasizing the likelihood of a soft Brexit. It explores negotiation strategies, highlighting the need for the UK to maintain some leverage. The discussion also covers market positioning, with a focus on neutral stances in UK assets due to the sensitivity of sterling to news. The video concludes with an analysis of global market trends, particularly the strength of the US economy and emerging markets.

What is the base case scenario discussed for Brexit?

• A hard Brexit with no deal

• A soft Brexit with negotiation strategies

• Complete withdrawal from negotiations

• A new referendum on Brexit

Why is the UK economy still considered for inclusion in investment portfolios?

• Due to its strong currency

• Because of its stable political environment

• Because it has the highest growth rate in the world

• Despite uncertainties, it remains a viable option

What is the stance on UK assets given the expected interest rate hikes?

• Highly negative

• Indifferent

• Neutral

• Highly positive

How do mid and small cap stocks perform when sterling is highly valued?

• They underperform the Footsie 100

• They outperform the Footsie 100

• They perform the same as large cap stocks

• They remain unaffected

Why is a neutral stance taken on assets sensitive to pound pricing?

• Due to the stability of the pound

• Due to the lack of investment opportunities

• Because the pound is expected to rise

• Because of the volatility caused by Brexit negotiations