Past Hung Parliaments Have 'Little Market Impact'
Morningstar U.K. Senior Editor Emma Wall spoke to three experts about how a hung parliament will affect stock markets and the economy.
Hung Parliaments Don’t Impact Markets
Ed Smith, Asset Allocation Strategist, Rathbones
Only two general elections have resulted in a hung parliament since the Second World War. The first was in February 1974 and the second in May 2010. February 1974 does not offer a paradigm relevant to today.
2010 offers a more appropriate case study, although the economy was on much shakier ground than today. The hung parliament only lasted six days before a Conservative-Liberal Democrat coalition was cemented. The pound fell 2% against the US dollar the day after the polls closed, and continued to fall a further 2% even after the Liberal Democrats announced their approval of the coalition deal.