Markets Down Over The Week?

eskbanker

ZingPowZing said:

Well no, because even if your investment is 100% in Nasdaq, unless it outweighs the value of your house, pension, salary and savings: you are still actuarially better off with £ rising.

But if you live in the UK, with the bulk of your net worth here and denominated in sterling, there is no meaningful sense in which your house is more valuable simply by virtue of the pound strengthening against one or more other currencies - you could argue (and perhaps are) that should you choose to artificially value your assets in another currency then they're more valuable, but why would anyone (actuary or otherwise) do that unless they're planning to emigrate?

[Deleted User]

eskbanker said:

ZingPowZing said:

Well no, because even if your investment is 100% in Nasdaq, unless it outweighs the value of your house, pension, salary and savings: you are still actuarially better off with £ rising.

But if you live in the UK, with the bulk of your net worth here and denominated in sterling, there is no meaningful sense in which your house is more valuable simply by virtue of the pound strengthening against one or more other currencies - you could argue (and perhaps are) that should you choose to artificially value your assets in another currency then they're more valuable, but why would anyone (actuary or otherwise) do that unless they're planning to emigrate?

I think that is to draw an artificial distinction between one UK citizen with a holiday home in (say Rhode Island) and another with shares in Apple. In both cases, the FX rates impacts the value of his investment.