FYI: Pound hits three-year low against euro

CLAPTON

mwpt wrote: »

So basically, in most of your opinions, whatever happens with the Pound is probably the right thing and nothing to be concerned about. It is an interesting way to view it.

I wonder what remain voters take on this is. From my own perspective, I know I am not overly concerned with it at the moment because most of my wealth is in assets that should increase in GBP value as GBP falls, so I should be about net neutral. People mostly in cash won't be as fortunate.

The low paid workers are probably the ones who will be hit hardest, having the least assets and most exposed to inflation.

Absolutely not in my case.
I have repeated posted about our massive current a/c deficit which everyone else seemed to consider of no consequence.
I have posted about the selling off of UK businesses and assets and foreign borrowings to fund the deficit.
I have also repeated posted about the extra stain placed by immigrants that increase imports but do not generate corresponding exports.

But we are where we are and given the circumstances a fall in the value of the pound is an inevitable consequence of a massive deficit. I accept the brexit was the spark but another would have occurred later when the deficit and the overseas debt would probably have been higher.

Better to let the usual laws of economics work and so let the pound find whatever level the market dictates.

Conrad

Im away in Borneo and it always gives me a better perspective being away in that when I turn on the telly here it's all the same chatter, people saying Japanese growth is revised down and all the possible reasons why, and the same economic and political debate and concern for country after country. Sometimes I get sick of the wall of chatter we are awash with

So much ruddy chatter and nonsense about nothing really, when you consider the big picture that world GDP is growing. Do you ever watch documentaries about early 80s British music? I can't help thinking how much we all worried about everything at the time and yet you look back and despite all the problems, wars an issues, the world still turned, great music was made, inventions and buildings were produced, we all got richer and have central heating and dont do to bad

Happy worrying campers

Herzlos

mwpt wrote: »

I wonder what remain voters take on this is.

Well I lost about 3% of my pension pot since Brexit, because some of it is invested in Europe. We've decided to abandon holidaying abroad this year, so not affected there.

So I guess all I'll be affected by is the cost of goods going up as the cost of buying anything in will rise (being that we're a net importer). I used to by a lot of hobby supplies from Europe, but they've suddenly shot up in price.

StevieJ

Eric_the_half_a_bee wrote: »

Get a grip. Inflation is 0.6%.

Get a grip it is 1.9% Glad I still have some of those NSI index linked and emerging market/Asia/USA funds. Hopefully limit the damage.

Conrad

Herzlos wrote: »

). I used to by a lot of hobby supplies from Europe, but they've suddenly shot up in price.

I was reading a CBI report which states members are reporting an increase in export orders.

We've had a very unhealthy unbalanced economy most of us have moaned about for decades, far too reliant on consumption and imports, so this jolt in the arm and Brexit is a great opportunity to reset the clock as it were. I truly think we'll look back on this as a historic positive turning point but as with all big changes some take a while to get over the fear of change

CLAPTON

StevieJ wrote: »

Get a grip it is 1.9% Glad I still have some of those NSI index linked and emerging market/Asia/USA funds. Hopefully limit the damage.

The July 2016 figure for CPI seems to be 0.6% according to the ONS

http://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/july2016

Main points
The reporting period for this release covers the calendar month of July 2016, therefore, the data refers to the period after the EU referendum.

The Consumer Prices Index (CPI) rose by 0.6% in the year to July 2016, compared with a 0.5% rise in the year to June.

Although the small increase in the rate between June 2016 and July 2016 takes it to the highest seen since November 2014, it is still relatively low in the historic context.

The main contributors to the increase in the rate were rising prices for motor fuels, alcoholic beverages and accommodation services, and a smaller fall in food prices than a year ago.

Conrad

StevieJ wrote: »

Get a grip it is 1.9% Glad I still have some of those NSI index linked and emerging market/Asia/USA funds. Hopefully limit the damage.

Ha I'm in Asia, you have a very screwed view steve. Turn on Asian news, all the chatter about reduced growth forecasts and all manner of issues and wars, and as for the US, not a great place to invest going forwards perhaps....

The U.K. is a very safe secure place, time to get real steve

wotsthat

Eric_the_half_a_bee wrote: »

Get a grip. Inflation is 0.6%.

I update my pension planning spreadsheet every month with the RPI figures. It's gone from 1.3% to 1.9% which has the effect of reducing my margin of safety by £1000 per year for every year of my life.

Not the end of the world because my discretionary spending is reasonably high so can choose to divert some of that to saving. Can you tell me where you work so I can reduce purchases of their product or services first?

CLAPTON

wotsthat wrote: »

I update my pension planning spreadsheet every month with the RPI figures. It's gone from 1.3% to 1.9% which has the effect of reducing my margin of safety by £1000 per year for every year of my life.

Not the end of the world because my discretionary spending is reasonably high so can choose to divert some of that to saving. Can you tell me where you work so I can reduce purchases of their product or services first?

do you never substitute one product or service that has done up for an equally satisfactory alternative?
RPI include mortgage interest payments : many people in retirement are no affected by these

StevieJ

Conrad wrote: »

Ha I'm in Asia, you have a very screwed view steve. Turn on Asian news, all the chatter about reduced growth forecasts and all manner of issues and wars, and as for the US, not a great place to invest going forwards perhaps....

The U.K. is a very safe secure place, time to get real steve

I am up about 14% since Brexit, as I say, along with the index linked, should limit the damage