What's going on?

The UK election late last week saw the Conservative Party beat their political rivals to a wider-than-expected majority � and excited investors woke up on Friday to find their British assets had risen.

What does this mean?

After years of political gridlock and market-disrupting Brexit delays, investors seem to be celebrating the prospect of an end to all the uncertainty. The Conservative Party now has the largest parliamentary majority since 1987, and it�s set to push through a departure from the European Union (EU) early next year. Investors� focus will then shift to the sort of trade deal the UK and EU actually agree on in 2020. For now, though, investors are living in the moment: the newfound certainty has brought investors back to UK assets, leading to a rise in the British pound and a drop in the value of safe-haven government bonds.

Why should I care?

For markets: Ripple effects.�
An index of 250 UK-focused British companies hit an all-time high on Friday, as investors distanced themsevles from worst-case predictions for the UK economy. Banks and homebuilders � which are traditionally�most�exposed to domestic comings and goings � led the charge, while shares of British utilities (at risk of nationalization from the opposition party) also shot up. Companies that generate most of their sales outside the UK, on the other hand, didn�t fare so well: their international earnings will be worth less when converted back into pounds given the currency’s 2% rise on Friday. Well, you can�t please everyone�

For you personally: Get settled in.
After three years of stagnation, the property market could be one of the main winners from Thursday�s election. The certainty that comes with a five-year government, combined with ultra-low mortgage rates, could spur a big increase in property transactions next year as aspirational buyers jump back into the market.