How to BREXIT-proof my portfolio?

dividendhero

Even the optimists only seem to be saying "things won't be that bad", is anyone on here actually increasing their exposure to UK?

jamei305

Voyager2002 wrote: »

An interesting read, this. Some expert advice on the original question, and from a surprising source.
https://www.forbes.com/sites/francescoppola/2017/11/12/british-lawmaker-advises-investors-to-take-their-money-out-of-the-uk/2/#49f4af184d45

Global Strategist says to invest globally. I bet their UK strategist says to invest in the UK. Perhaps their commodities strategist also says there's some great commodity buys at the moment.

talexuser

The UK is part of the Global market in his remit and he is advising to re-balance investment away from the UK, hardly the impression the leave campaign he was involved in gave of positive consequences.

ermine

dividendhero wrote: »

Even the optimists only seem to be saying "things won't be that bad", is anyone on here actually increasing their exposure to UK?

I confess on a contrarian POV I've been tempted. Global fund managers really hate the UK at the moment.

Trouble is you have to chase small and mid caps to avoid the 70% foreign component of the FTSE100 if you want companies exposed to the rip-roaring dynamism that will be the UK unshackled from the tribulations of the EU. I think we need some more solid Brexiteers like John Redwood spilling the beans about what they think success looks like for the markets to depress the market a bit more. But then they depress the currency. It would be easier to be contrarian on the UK if I were living in the part of the European superstate that Brexiters as so keen to get away from, at least the money I was going to buy my contrarian assets with wouldn't be dropping in tandem :mad:

Due to the fall in currency even things like Aberforth Smaller Cos are still up in nominal terms. Looking at the omnishambles the government is making of Brexit I figure there will be opportunities in the next couple of year, perhaps to rotate a little bit of VWRL into ASL. You could also look at a FTSE250 index fund, but when you look at the constituents there's still a lot of international earnings stuff polluting it. And you're still paying the Brexit devaluation tax on the depressed value of the money you're buying it with.

BananaRepublic

ermine wrote: »

I confess on a contrarian POV I've been tempted. Global fund managers really hate the UK at the moment.

It is curious that many if not most people here follow the index fund band wagon, on the basis that they do not trust the ability of fund managers to predict the markets. And yet when fund managers take an anti-Brexit stance, suddenly they are to be trusted. :rotfl:

Thrugelmir

dividendhero wrote: »

Even the optimists only seem to be saying "things won't be that bad", is anyone on here actually increasing their exposure to UK?

Buy into companies rather than markets.

colsten

ColdIron wrote: »

Except he hasn't

Do you have to spoil things with pesky facts?

ColdIron

Facts schmacts, you can prove anything with facts

badger09

ColdIron wrote: »

Facts schmacts, you can prove anything with facts

Or you can use alternative:cool: facts

https://www.theguardian.com/us-news/video/2017/jan/22/kellyanne-conway-trump-press-secretary-alternative-facts-video

LilyB1

Simulated Bank of England stress tests are implemented. These aim to demonstrate that the big UK banks could survive even the worst-case scenario recession. This means that the banks are very likely to be resilient enough to withstand the Brexit repercussions. The Governor has suggested that likely Brexit risks fall far short of the extreme conditions those stress tests were designed for. However, investors need to be aware that this will come at a cost. Banks will more than likely be required to lower savings rates in order to maintain a sustainable model during the Brexit transition. Through following Bank Base Rate downwards and meaning it’s savers who will lose out.

P2P investing is thought to be less geared to external factors and the undulating confidence. Using the same stress testing methodology as used by the banks. Whilst at the same time avoiding the drastic lowering of saving rates that would otherwise hit investors. The main reason for this relative stability is that relatively low overhead Peer to Peer lending is able to offer a higher interest rate to an investor than a bank savings account can.

More over, they can still offer borrowers loans at a time when banks want to slow their lending. Hence, perhaps allowing higher borrower rates. Recessions can effectively increase Peer to Peer margins. This benefits investors with higher rates than banks whilst also being able to cover any increase in expected losses. Peer to Peer interest rates for investors are often fixed rate. This will be attractive with talk of even lower bank savings rates.