Most people are bored with Brexit but must watch what's happening because they are concerned about their finances.
The big question as the political infighting unwinds at Westminster, almost changing by the hour, is what does the possibility of a General Election mean? That you should diversify your assets most commentators agree. Gold is one area that a fund manager might look at. You should stay invested because if Brexit is resolved, assets can rise. What about Sterling? Now it's £1.19 or £1.20 against the US dollar.
Some experts believe it's advisable to stick with Sterling, but it's an opinion and lots of things could happen and your adviser may take a different view. Some think we are close to the bottom and the bad news is already priced in. If we are close to a low, assuming we get some certainty, then we are likely to see a rise in Sterling. It won't be massive because we have some pain to go through before we see a recovery, so most don't think the price is going to shoot back up. If the politicians make the right decisions, Sterling will go back up, but I suspect £1.30 or £1.35 to the dollar in the future is probably as high as the price will go.
About the Author: Glen Callow
