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Just no way to predict the impact of a no-deal Brexit; THE MONEY PLANNER YOUR FINANCE EXPERT WARREN SHUTE.


WHAT effects might a no-deal Brexit have on my investments? QAWITH the new Prime Minister committed to Britain leaving the EU on October 31, this is a question with big implications.

You should always start investing by thinking about why you're doing it. A holiday, retirement or to repay a debt.

You should also only be investing in the markets if you have at least five years, and preferably seven before you need your money. That should give you time to ride out lows in the market.

Your asset allocation is the mix of your investments, which is likely to be stock market investments and bonds. You may also include property in your mix.

A greater share of equity means you'll experience more volatility.

A greater share of fixed income means you'll see less extremes and a more consistent and on average, lower returns.

Setting up your investments yourself can be fun, but a professional who does this for a living will always know more.

As with any field, there are so-called 'star fund managers' out there who have been doing this for a long time. But many years of academic research has shown that even the best professional investors managers struggle to outperform the market and give you a better return than a passive fund after their fees have been taken into account.

An index or passive fund is where you buy the whole market. But because they're not buying and selling all the time, their fees are often considerably lower.

The truth is, I don't know what will happen after 31 October - and neither do other commentators.

When people are talking about the future, they're giving you their opinion. Nobody can predict the market future with certainty.

The markets will pull back at some point, whether because of Brexit, corporate collapse, terrorism or something else.

But I don't know when, neither do you, and neither do the commentators in the media.

Filter out that noise, and stick to your investment strategy.

Warren Shute is the author of the bestselling personal finance book The Money Plan. Send your questions to Get his free money guides at

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Publication:Evening Gazette (Middlesbrough, England)
Date:Aug 19, 2019
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