I am considering whether to sell some of my holdings ahead of the Parliament vote on Brexit due Dec 10th-ish(?) in preparation for buying back into them soon afterwards. Seems almost (?) certain that the deal will be voted down and we will be off into political limbo with no deal brexit, PM change and general elections all a real possibility. Inevitably the market will react to these likely negatively in most cases, but the £ will probably drop a lot on the day of the vote (if it fails) and those FTSE 100 stocks most exposed to $ earnings will likely do well - thats what happened with the brexit referendum vote after all.
So what I am I considering selling:-
- Asset Managers (LGEN, AV & SLA) - all have reacted very negatively to such events previously. Recovering afterwards.
- UK Banks - Most notably LLOY.
- Housebuilders (PSN, BDEV, TW etc) - as per 1 & 2 above.
- Utilities & REITs - see article below.
- Thinking about my ETFs that track the FTSE. Suspect these will take a hit on the day of the vote.
Will definitely hold my overseas stuff especially things that are largely USD & EUR denominated. Seems that healthcare and oil/gas might also be things to continue to hold.
Appreciated any considered views on this strategy.
PS Further reading of the linked article (in particular see Figure 9) indicates that I should have added Insurers, REITs, Retailers, Telecoms and Travel & Leisure to the list of sectors to avoid. Interestingly they show Utilities as being positively affected, but I personally am steering clear of those ATM due to the Corbyn threat.