With the year anniversary of Brexit drawing nearer, it appears that our future in the EU is just as uncertain as it was on the 23rd June 2016. Since the day of the referendum vote, we’ve had a plethora of political events across Europe drawing our attention away from the word at the back of everyone’s mind: Brexit.

Now, with the shock UK election behind us and a clear political calendar in Europe until September, Brexit negotiations have begun.

Simon Gergel, Portfolio Manager at Allianz Global Investors, said that soon after the elections investor focus would move onto Brexit. As negotiations begin today, this couldn’t be truer and Brexit is the buzzword once more. However, there appears to be a universal investor sentiment, we need to wait and see.

We’re still in the dark when it comes to what Brexit really means, whether it be for the economy, trading relationships or consumer investing. We’re still none the wiser. Aviva Investors enforced this sentiment when they said, ‘we still don’t know what shape Brexit is going to take, whether it’s going to be hard, soft or somewhere in between’. As they discussed their portfolio positioning amid Brexit headwinds. Watch the video here

Allianz Global Investors’ Gergel identifies Brexit, and the development of our trading relationship creates one of the biggest threats to the UK economy, but with most of the UK earnings coming from abroad anyway, how much of an issue is it?

Not only did sterling drop after the initial Brexit vote, in the time since the vote on the 23rd June we’ve seen a 17% decline in sterling vs the US dollar. This was not something that’s easy to ignore and has sent investors diving towards ‘safe haven’ assets, driving their prices higher than ever.

While UK sentiment remains both volatile and fragile, ‘investors need to look through a slow-moving political process to the fundamental drivers of equity market dynamics,’ said Christopher Metcalfe, Newton Investment Management.

Experts from Invesco Perpetual say we’re right to be concerned about the impact of Brexit on the UK. AXA Investment Managers reiterated this and say, ‘Brexit is a big issue. But not just for politicians it’s also affecting business confidence and we’re seeing that already in the UK’. Watch the video here, to see what else they have to say about investing through the noise and political climate.

Whilst we’re very concerned about the impact Brexit will have on us, could Brexit also have an impact in mainland Europe? Cheap oil, cheap credit, a weaker euro and less austerity are spurring recovery to the strongest levels so far. The Eurozone’s economic expansion and growth have outpaced even the US and UK in Q1 of 2017. As the economic recovery in Europe gathers pace, does Brexit have the potential to delay or even derail it?

Jeff Taylor from Invesco Perpetual doesn’t think so as he stated, ‘for Europe, Brexit isn’t a positive but it doesn’t have the power to derail the recovery that’s happening’. Click here to watch the video and see what else Taylor has to say.

So, we can expect the recovery in Europe to continue, but the big question that remains is, will Europe still be reasonable with the UK given the weakened position post-election and sterling fall? Schroders’ Azad Zangana says, ‘the result of a hung parliament means we’ll have a weaker government, which will be much harder to pass legislation’ and this legislation could be needed for a smoother Brexit.

Brexit negotiator David Davis says, ‘our objective is clear: we must first tackle the uncertainties caused by Brexit. First for citizens, but also for the beneficiaries of the EU policies and for the impact on borders, in particular, Ireland.’

Whilst Davis believes their objectives are clear, we’ll have to go with the investor standpoint and wait and see what it means for us.