Last week U.K. Prime Minister Rishi Sunak shocked voters by calling a snap election for 4th July, far earlier than commentators expected. The calling of a general election is a risky move for Sunak’s Conservative Party, given that the Labour Party opposition leads by at least 20 points in most polls. Most commentators had expected Sunak to delay until late October to attempt to gain some ground in the polls. The election is just one of many in what has been dubbed ‘The Ultimate Election Year’, something we at Zurich referenced in our annual outlook back in January. 2024 will see more people than ever before vote in elections, with over 64 countries hosting national elections.


For investors, this can seem like a volatile time to be invested in the market, elections after all, when they uphold democratic values, can have some level of uncertainty. However, research has shown that over the medium term, elections have a minimal impact on market performance. Market returns tend to focus on economic and inflationary trends, despite political interference at times. At Zurich our active top-down investment process remains both disciplined and flexible. We construct our portfolios to allow us to take advantage of opportunities over all parts of the economic cycle and continue to monitor geopolitical developments to avail of investment opportunities as and when they present themselves.


As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.