Welcome to Thoughts on the Market.

I'm Andrew Sheets, Chief Cross Asset Strategy

for Morgan Stanley.

Along with my colleagues bring you a variety of perspectives,

I'll be talking about trends across the global investment landscape and how we put those

different ideas together.

It's Friday, January 3rd at 2 p.m. in London, a very happy new year.

For over three and a half years, the United Kingdom, where I'm recording this, has been associated with economic uncertainty and political intrigue.

In June of 2016, the country voted to leave the European Union, an entity that is both a political organization and the largest free trading region in the world.

But because there are many ways to leave such an organization, from a full break to a close relationship,

because this question divided those who wanted to leave both before and after the referendum,

and because about 48% of the country voted against leaving in the first place, the gears of UK politics

quickly ground to a halt.

Since the referendum in 2016, the UK has had two further elections and three different

prime ministers.

Multiple deadlines for Brexit have come and gone, often at what seemed like the last possible moment.

The uncertainty caused business investment to slump and interest from international investors

to Wayne.

Between the day of the referendum and the 1st of December of 2019, the 100 largest UK stocks underperformed their global peers by about

44% in dollar terms. But lately things have been changing. Elections in mid-December of 2019 delivered a stronger than expected majority for the current government.

Their larger majority suggests they'll have an easier time taking that action than before.

Why does that matter? After a long period without change

...