Where is Pound £ heading?

sebastianj

I thought Euro was going down the pan and $ will follow it but now £ is almost equal to Euro, where will this stop. We do not have oil nor manufacturing industry, on top of every thing we have dodgy Banking.

If only we could get the investment Banking integrity back, then we can manage World monies and perhaps live off the commission. Any one with any views?
sebastian

takesyourchances

About a month ago I read a report that the pound was predicted to fall back to the level of the low of 2008/2009 by the end of the year and so far that is looking to be the case.

Sterling it said was riding in safe mode and once the focus of the Euro and mainland Europe shifted towards the UK and Sterling the pound would start to decline. From I read that report it has started to fall steady.

Makes all those European Holidays more expensive this coming summer again

guitarman001

It's going down the toilet. I almost regret not leaving the country. But how can you profit from it, that's the real question (and probably the sort of question that got us into this mess).

DotMatrix

The pound is very weak. We will more than likely lose our AAA rating this year. Also a BoE rate cut for Q1 2014 priced into the market.

sebastianj

So how can we benefit from the disaster?
Buy in advance? Sell in advance? Which commodity? etc. etc
seb

takesyourchances

It was recommended by a currency trading company I use back in early January that if you had any business to do later this year etc that you secure the rate, their forecast was correct and I was telling people going on holiday to the Eurozone about it and to change if they had any spare momey now towards spending.

It looked liked good advice as it has fallen but no one took it :cool:

sabretoothtigger

benefit from the disaster

Bit of a contradiction, you must have caught that from politics.
You can lose less in savings by avoiding holding sterling exclusively. In 2008 when we lost 35% of cash value, I noticed I had lost less in my asia pacific tracker then expected. I guess this was because it was money outside the UK and EU, only took a year to easily beat savings rates

guitarman001

Would it make sense to buy UK index linked gilts funds?

sabretoothtigger

You would still rely on government and also bond prices reflecting a respect for the good management of HMG.
Since the tide is going out at some point, I dont expect gilts to run a premium even when index linked. Gilts arent cheap so far as I know.
If all your bills are in sterling then maybe its a necessary evil to hold that or similar. Inflation in petrol I expect to vastly exceed any offical compensation, so I think holding some asset more globally based is fair if you hope to keep up

sebastianj

Thanks sabretoothtigger,
No one expects the worst, I also thought of moving into currency like some friends did, but chickened out. It is a desperate situation and survival is the name of the game now. The brain has become num and can't think.
Sebastian

guitarman001

I have to sort out my finances and pension. I guess this is as good a place as any....

- Lost near £20k in AIM gold miners stocks... never again.
- Near £33k total savings (£12.5k NS&I index-linked which I COULD roll over in June but probably wont), £13k cash Vantage accounts, £5.64k Santander 2 year 4% ISA, some in First Direct 8% account and other money sitting in Hargreaves account.

- Considering putting 10% into gold, not sure whether to buy physical (ugh - I'd probably get conned) - or use Bullionvault. Basically worried about sterling... and not wanting to play any other currency games.

- Now that I'm in the 40% tax band, I was considering putting a chunk into pension as it's almost free money (40% top-up by the government!). I think I'm justified in going mainly for low-fee trackers... but I will add one or two managed funds just in case - even split. Think Aberdeen Emerging Markets for the managed funds.

- My savings are pretty important to me.. at the same time, rates are rubbish. Probably keep 50% in cash and MAYBE start putting money into my S&S ISA.. but I'm not wanting to lose too much of it! Was looking at Vanguard 40% or Vanguard ex-UK equity (good returns if riskier).. and also maybe some corporate bonds. Again, wary of the UK.. so not sure I'd like to put too much money into anything UK-related...


Advice, views?