Bickering MP shave left me pondering if I should just sell up

AS BREXIT descends ever deeper into farce, one thought keeps coming to the fore: my life savings are at the mercy of these idiots!

After more than three decades of investing, all my efforts could be brought to nought by pompous John Bercow, selfrighteous Amber Rudd, Jacob Rees-Mogg, Anna Soubry and the other boundless egos who have lost sight of those they are supposed to represent.

Britain has become a laughing stock — but, as an investor, I am finding it hard to see the joke.

There is one bright spot. Stock markets hate uncertainty. Since the start of the year, however, they have generally ploughed a positive furrow, almost as if they, too, now regard our politicians as a ridiculous sideshow to events in the real world.

Since the start of the year, the FTSE 100 is up by 7 pc, recovering much of the 12.5 pc loss it suffered in 2018. The FTSE 250 — covering medium-sized companies — is up by more than 8 pc.

But the longer the political bickering goes on, the closer I come to pressing the ‘sell’ button and moving my savings into cash until this mess is sorted out. But how long would that be? Months? Years? The rest of my life?

Holding savings in cash has serious downsides. The interest paid on cash held in selfinvestment personal pensions or investment Isas is pathetic.

I’d earn around 0.35 pc and my savings would lose value against inflation. Then there’s the danger of missing out if the stock market rises. Yet the downsides of staying in the market right now are just as worrying. If I was in my 30s or 40s, I could ride out any ups and downs. A market fall would be of little consequence, as it would enable me to invest for the long term when prices were lower.

But I turned 60 last week and, if the market suffers a big fall, prompted by the parliamentary clowns — or some of the many other negative stories, such as trade wars and slowing economic growth — I will have limited time to put things right. I could see much of the money I’ve spent half a lifetime accumulating wiped out by the actions of MPs who put their own interests first.

Consider some possibilities. A no- deal Brexit could send sterling plunging and leave many UK- based businesses battling against trade tariffs.

If we remain in the EU, it should boost UK companies, but could send sterling soaring. That would hit the profits of multinationals whose profits are in dollars. It would also mean a one-off hit for overseas investments priced in foreign currencies — and make it difficult for managers of U.S. and global funds to show a profit.

As an example of the impact currency movements can have, consider the investment I made in mid-December in some shares tracking the U.S. S&P 500 Index.

Since I bought them, the S&P 500 is up by 10 pc. Brilliant! But much of the profit has been lost because the dollar has fallen against sterling by around 5.5 pc.

The result is that my net gain, once charges have taken a bite, is around 2pc — and that’s in a rapidly rising market.

It’s no wonder Jason Hollands, of Bestinvest, has warned that he sees a rise in sterling as the biggest threat facing UK investors right now. This is because investors have been selling UK funds and buying global and U.S. ones. If sterling goes up, or the dollar falls, those global and U.S. funds will struggle to show profits to UK investors.

So — other than fretting — what have I been doing? Well, I have sold a little here and there, taking some profits to try to create a better balance.

I now have a greater proportion of my money in cash than I’ve had in years, but remain committed to the stock market long term.

As part of the balancing act, I picked up some Lloyds shares in November for 55p each. They now trade at 62p, so that’s a healthy 12 pc gain. I bought a few more a month ago at 63p with fingers crossed — and watched them rise to 65p before falling back.

I rarely dabble in buying shares directly, preferring to use investment funds that hold a broad mix of shares.

But the UK-focused bank pays an income of around 5 pc — and several brokers are forecasting further share price increases.

Even if prices fall, there should be a nice income to keep things ticking over.

We live in interesting times — but I desperately wish we didn’t.