How to BREXIT-proof my portfolio?

Money_Help

Investing should be for the long term and once you have built a portfolio that is appropriate for achieving your goals for the level of risk you want you need to let it do it’s thing. A well diversified portfolio has seen it all before over the years and always trends upward over the long term. Ignore forecasts and enjoy living your life.

dividendhero

pafpcg wrote: »

Use a little imagination!

Invest in:
.

KFC franchises - all that lovely chlorinated chicken that UK will be forced to import from America

Builders - the likes of Nissan & Toyota's car plants will be demolished to make way for retail parks selling imported goods.

Rickshaws - Young people will need to lease rickshaws so they can peddle Chinese tourists around.

Properties straddling Irish border as Ireland becomes smugglers paradise

Sam_J

My feeling is that you should do nothing about Brexit. Assuming a portfolio is an investment for the long term (10 years+) then I don't think Brexit should be much of a factor in decisions made right now. From what I understand most of the disruption will be in the short to medium term. From the long term analyses I have seen there might be a slight slowing of growth in the long term, or no effect at all. But really nobody has much of an idea, because so much could happen in the coming decades.

Personally, I am not doing anything different because of Brexit. If anything, my bias would be towards not moving investments out of the UK right now, because the pound is low due to Brexit uncertainty right now, making foreign assets more expensive.

Malthusian

Voyager2002 wrote: »

No, because BREXIT has not yet happened.

It has however been priced in.

ermine

Voyager2002 wrote: »

are there any strategies to mitigate the likely losses and perhaps even benefit a little?

That ship sailed on the 23 June 2016, pretty much all the known knowns are in the price now. The unknown unknowns will do what they will do.

Sure, an internationally diversified portfolio insures you well against any individual country's act of self-harm, but you needed to have bought that that before your Great British Pounds descended to 80% of their value before the referendum.

All you can do now is hope and pray that the pied pipers were right and they will Make Britain Great again, like it used to be in 1973 before we joined the nasty EEC and we all went to pot. Listen to blowhards like John Redwood and play some stirring music from the 1950s and hope that's the sort of thing that will happen.

I look at what happened to my portfolio and think hey, what a fantastic investor I am. Then I realise that the yardstick measuring the portfolio value is a lot shorter than it used to be, so I'm not so smart after all. But I'm glad all that nominal gain was in an ISA...

Filo25

Malthusian wrote: »

It has however been priced in.

Only partially due to the uncertainty around the final outcome, its safe to say a "No Deal" scenario isn't fully reflected in Sterling's value or in equities (for better or worse), likewise on the other end of the scale something akin to a rebadged EEA membership almost certainly isn't reflected in Sterling's value either.

chrisgg

If you want to reduce your UK equity weightings but avoid some of the currency fluctuations that this will result in you can always look for global/overseas funds with sterling hedged share classes.

Thrugelmir

Voyager2002 wrote: »

I have just heard some analyses of the probable impact of BREXIT on various sectors of the UK economy. For each sector, the forecasts are alarming: only government bureaucracy seems likely to grow in the short term, and I cannot see a way to invest to benefit from this.

Short of off-shoreing my entire portfolio, or concentrating on the FTSE 100 who earn most of their income from abroad, are there any strategies to mitigate the likely losses and perhaps even benefit a little?

How does Brexit differ from the rest of the "news" that impacts the markets?

ffacoffipawb

Voyager2002 wrote: »

I have just heard some analyses of the probable impact of BREXIT on various sectors of the UK economy. For each sector, the forecasts are alarming: only government bureaucracy seems likely to grow in the short term, and I cannot see a way to invest to benefit from this.

Short of off-shoreing my entire portfolio, or concentrating on the FTSE 100 who earn most of their income from abroad, are there any strategies to mitigate the likely losses and perhaps even benefit a little?

I think Corbyn-proofing is more critical. God knows how though - 0% UK Exposure, 100% non-UK Equity perhaps???

Apodemus

dividendhero wrote: »

Rickshaws - Young people will need to lease rickshaws so they can peddle Chinese tourists around.

. :eek:

Might be more legal if they were to pedal them around!