Chris Dillow 

The cost of uncertainty

Chris Dillow

Chris Dillow
The cost of uncertainty

Political uncertainty is costing UK shareholders hundreds of billions of pounds. My chart shows why. It plots a measure of global policy uncertainty compiled by Scott Baker, Nick Bloom and Steven Davis against the dividend yield on the All-Share index. There is obviously a strong link between them. Falls in policy uncertainty in the late 1990s, mid 2000s, 2009-10 and in 2013-15 were all accompanied by falling dividend yields. And rising uncertainty in the early 2000s, 2008-09, 2011 and last year all saw the dividend yield rise.

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