The election result has plunged the UK into a period of significant political uncertainty. There have been calls for Theresa May to resign, and there is the potential for a relatively weak minority government formed by the Conservatives and DUP. This could be just the beginning of an intense period for UK politics.
In just over a week, the UK is due to begin Brexit talks with the EU. This was already expected to cause significant uncertainty for the UK political scene, as well as for the UK economy and investors. Now, though, there is the prospect of a weaker government than anticipated; the make-up of which has not yet been finalised. It would be unsurprising for share prices to become increasingly volatile, as well as suffer from declines due to deteriorating investor sentiment.
Therefore, buying defensive shares such as gold miner Randgold Resources (LON:RRS) could be a good idea. Already, the company's shares have moved higher following the election result. They could deliver strong returns if the UK political and economic outlook continues to be highly uncertain. As well as this, the company offers an improving balance sheet, upbeat growth forecasts and a relatively appealing valuation.
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