A referendum on Scottish independence will take place on Thursday, 18th September 2014. Although long term we do not feel a Yes vote would have any significant implications for the stockmarket, it is likely to have an effect on Sterling and Government Bonds and will undoubtedly create a great deal of uncertainty. This may lead to short term volatility in the stockmarket. However, we feel stockmarkets are more heavily influenced by global events and trends, rather than domestics issues.
We are not recommending any changes to investment portfolios in preparation for the referendum, as we believe that any reaction by financial markets will be short term.
Click here to view an article by Stephanie Flanders of JP Morgan Asset Management, which gives an interesting overview of the potential implications.
Please contact either Peter Ruddy or David Penney if you would like to discuss this any further.