In recent years, investors have faced two major sources of political risk when considering UK assets: the possibility of a hard Brexit and the prospect of a more radically left-leaning government.
December's Conservative victory has removed this Corbyn risk, however, Brexit uncertainty looks set to linger.
The uncertain state of British politics may have affected UK share valuations in recent years, but intrinsic valuations of the best stocks remain compelling.
Quality companies with strong fundamentals have been resilient through the turmoil, leaving them well positioned to thrive as the political landscape settles down.
However, mid-January saw the emergence of Covid-19. This has significantly changed the investment landscape, at least temporarily.
Experience from previous virus outbreaks suggests the impact to consumption and business confidence may only be temporary rather than permanent.
For investors focused on the long term, the outlook for UK mid- and small-cap companies remains positive.
These stocks should provide investors the opportunity to diversify beyond the typical holdings in a FTSE 100-focused fund.
One such area is information technology. Technology is not something the UK is historically strongly associated with but, looking over the past five years, it has consistently been one of the strongest contributors to returns.
Leading IT solutions providers such as Avast and Softcat are benefitting from demand for greater business efficiency, remote network access and growing concerns over cyber security.
There is a lot more to the market than meets the eye, and this often gets overlooked in the headlines.
While the media has kept its focus on struggling traditional high street retailers, there are also sub-sectors in the market that still have substantial room for growth
Companies such as Dunelm and Games Workshop are good examples of businesses that are exploiting the niche opportunities in the sector.
With businesses looking to continually evolve and meet changing consumer demands, the outlook for sustained organic growth looks positive.
Guy Anderson is lead investment manager of The Mercantile Investment Trust
• The UK market remains cheaper and more attractively valued than global markets
• UK technology remains a strong contributor of returns
• Long-term impact of Covid-19 on markets, consumption and supply chains remains hard to predict
• Brexit uncertainty set to linger through 2020