UK politics has moved quickly. Keir Starmer has resigned, Wes Streeting has backed Andy Burnham, and Burnham is now set to become Prime Minister.

Investors will understandably want to know what this means for the markets. Political change can affect confidence, gilt yields, the pound and the way international investors view the UK.

Periods like this often create a temptation to act. Some investors may want to reduce UK exposure, move into cash, or wait until the policy picture is clearer. That can feel sensible. The problem is that markets rarely wait for clarity. By the time the news feels more settled, prices may already have adjusted.

For long-term investors, the question is not whether politics matters. It does. The question is…