If Boris Johnson were to win a general election, deVere Group CEO and founder Nigel Green has warned that UK asset prices and the pound would tumble.
The warning from Green comes following the publication f a ComRes poll in The Daily Telegraph that suggests that with Mr Johnson as leader the Conservatives could be heading for a landslide at the next election with a majority of 140.
Green made the comments as Johnson claimed he would be “willing to pull the UK out of the European Union with no deal in place”, leading the deVere CEO to believe asset prices and sterling will “certainly” fall.
“Should Mr Johnson go on to win a general election, especially with a clear majority, he will be emboldened in his approach to Brexit,” he said.
“Mr Johnson’s no-deal relies on the idea that the absence of a deal on 31st Oct will -by default- mean a no deal Brexit. And that parliament and Brussels are both powerless to stop it.
“This suggests that the parliament vote against a no-deal a few months ago is limited to banning the government from making it a policy goal, but it can’t stop a no-deal through inaction.”
However, Green added that UK asset prices and the pound will fall, but not only because of Johnson’s Brexit policy. “He is also viewed by many as untrustworthy and lacking in consistency,” he noted.
To conclude, the deVere founder stated: “A Boris Johnson win at a general election- especially with a clear majority – can be expected to prompt a significant number of UK and international investors in UK assets to consider the overseas options available to them to build and safeguard their wealth.”
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