The stocks and sectors that will benefit from Labour

Endless column inches have been dedicated to spotting the winners and losers from the change in the flavour of the UK government. One important thing to note is that taking a big picture view, markets in the past 30 years have been relatively ambivalent as to the leanings of the party in charge and, overall, the winner and loser sectors are likely to average out to net zero effect. So passive investors should see limited overall change.

For more active investors, there will be opportunities to focus on stocks or sectors that are likely to see faster growth as a result of policy changes. A Labour win by a large majority had been long assumed and, even the likelihood of higher taxes had already been accounted for. So what can be still looked for in the election aftermath?

There are going to be misreads of sectoral benefits and the impact of other factors that may have become crowded out by post-election thinking. That is what we intend to look at in this mini-series, challenging the accepted wisdom or reminding ourselves that there are plenty of other forces capable of shaping performance.