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Urgent Stock Market Message

Conservative Outright Majority Election 2015 Win Possible

ElectionOracle / UK General Election May 08, 2015 - 05:39 AM GMT

By: Nadeem_Walayat


Increasingly as the night has progressed where rather than one of the Exit Poll being wrong by over forecasting the number of seats the Conservatives would winl (316). Instead with 344 of 650 results declared (5.15am), it is becoming increasingly likely that the Conservatives may well just be able to pull off an outright majority (323+), this is as a consequence of the continuing stronger than forecast swing from Labour to Conservatives than indicated by the Exit Poll.

UK Election 2015 Seats Forecasts

Here are the results of the BBC seats forecast, Exit Poll, my forecast as of 28th Feb, and the last opinion pollsters seats forecasts.
Market Oracle May2015 .com Electoral calculus Election Forecast The Guardian Exit Poll BBC BBC

28th Feb

7th May 6th May 7th May 7th May 7th 10pm 3.20am (102) 5.15am (344)
Conservative 296 273 281 278 273 316 316 316
Labour 262 268 276 267 273 239 239 239
SNP 35 56 52 53 52 58 58 58
Lib Dem 30 28 18 27 27 10 10 10
UKIP 5 2 1 1 3 2 2 2
Others 22 23 22 23 22 24 24 24

Exit Poll /
BBC Seats Forecast 8th May - 5.15am implies :

Conservatives + Lib Dems = 326 - SUCCESS

Conservatives + DUP 8 seats = 324 -SUCCESS

Labour + Lib-Dems = 249 - FAIL

Labour + Lib-Dems + Plaid Cymru + Greens + SNP = 313 - FAIL

Therefore if the exit poll remains correct then as of 5.15am the Conservatives are set to form the largest party.

However, as is becoming increasingly likely given the swing from Labour to the Conservatives then the Tories could even win a small outright majority as my consistent house prices to seats forecast analysis has consistently stated was possible:

01 May 2015 - UK Election Forecast 2015 - Who Will Win?

Implications for Election 2015

Momentum has picked up from February's +6.6%, to +7.7% for March, though has missed the headline grabbing new all time high in average UK house prices just prior to election day, probably due to ongoing weakness in house prices in the South East.

Therefore the Conservatives mini election boom appears to have failed to spike to a +10% inflation rate for election day, where my expectations were that it could have ranged to as high as +12% for an outright majority 30 seats inducing result as my long-standing analysis of seats vs house prices trend trajectory forecast.

16 Dec 2013 - UK General Election Forecast 2015, Who Will Win, Coalition, Conservative or Labour?

The following graph attempts to fine tune the outcome of the next general election by utilising the more conservative current house prices momentum of 8.5% which has many implications for strategies that political parties may be entertaining to skew the election results in their favour.

The updated election seats trend graph suggests that the Conservatives are on target towards achieving a single digits outright majority which is completely contrary to every opinion poll published this year. Which if it materialises then I am sure for Election 2020 everyone will be staring at the house prices indices rather than the opinion polls. Though as is usually the case that when the consensus becomes focused on an particular indicator then it usually stops working.

Whilst the opinion pollster's seats forecasts average to:

  • Conservatives : 276
  • Labour : 271
  • SNP : 53
  • Lib Dems : 25
  • DUP 8

Where if instead the opinion polls prove to be correct then the UK is heading for an extreme hung parliament where -

Conservatives + Lib Dems = 301 - FAIL

Add DUP 8 seats = 309 - FAIL

Labour + Lib-Dems = 296 - FAIL

Labour + Lib-Dems + Plaid Cymru + Greens = 303 - FAIL

Thus according to the opinion polls the only workable majority would be one of a minority Labour government that is supported by the SNP (53) to total 323. Which compares against my long standing forecast conclusion as of 28th Feb which is primarily based on economic and market analysis rather than opinion polls:

UK General Election May 2015 Forecast Conclusion

My forecast conclusion is for the Conservatives to win 296 seats at the May 7th general election, Labour 2nd on 262 seats, with the full seats per political party breakdown as follows:

The bottom line is that the opinion polls do not reflect how people will actually vote on May 7th when they are faced with a stark choice of steady as she goes ConDem government or take a huge gamble on Ed Milliband's Labour party. So in my opinion several millions of voters will chose to play it safe with ConDem which thus is the most probable outcome.

Also available a youtube video version of my forecast:

And the most recent iteration in this video analysis:

The exit polls are precisely in line with my long-standing forecast as of Feb 28th for the continuation of a Conservative led government on 326 seats and that there was a strong possibility given my house prices analysis that the Conservatives could yet win an outright majority. Therefore virtually all of the pollsters have have eggs on their faces as the mainstream media has flushed untold millions down the drain on commissioning opinion polls that turned out to be WRONG just as the polls were wrong in the run up to the Scottish referendum that was never a 50/50 proposition which at the time I concluded was mainly so as to allow pollsters to sell opinion polls and the mainstream press to sell copy and so it has been for the 2015 election campaign.

UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over!

There is another reason as well for why the polls were so close and that is one of SALES, the polling industry SELLING a tight election so that the gullible mainstream press would buy their polling services. Therefore painting a picture of a tight race by manipulating the data will have turned out to be a huge money spinner for the polling agencies.

My article concluded in the most probable forecast for the outcome of the result would be for at least show a 10% gap between NO and YES, and definitely not reflective of the mass hysteria.

Therefore the most probable outcome is inline with the polling ranges of before the YES campaigns intimidation and fear phase began to play a prominent role in the frenzy of campaigning of September that rather than a 50/50 tight race is more probably going to result in at least a 55% NO vote victory, and I would not be surprised if the NO vote even breaks above 60%!

Ensure you are subscribed to my always free newsletter for continuing in-depth analysis and concluding trend forecasts.

Source and Comments:

By Nadeem Walayat

Copyright © 2005-2015 (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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