Where to invest right now given the value of the pound

fizio

Having invested already in both property and stock market (mostly global/US/UK trackers etc) I am wondering where to put my cash in the current climate. Interest rates means property is less attractive than even 6 months ago and pound crash means investing more in foreign stocks is not a good idea either.
At the moment I am just sitting on cash in the bank (best rates I can get) and as interest rates rise, this may well stay as a good option - as I can't see any low-mid risk investment beating inflation anytime soon. Cash in the bank also means ready to move as/when opportunities arise. 

My other thinking is to invest in the FTSE 100 (rather than UK all-market) given the global nature of many companies. 

So my question is - assuming an investor already has a reasonably diversified portfolio and looking to put a pile of cash somewhere (for the mid-long term) then what are the options at the moment.. I don't have any gold but not sure I fancy going down that road..

InvesterJones

Step 1: decide your asset type proportion for your portfolio according to your desired risk/diversification - speak to an advisor.

Step 2: use the cash to build up assets that are lower than your desired proportion.

So if you're looking to invest more in equities then that's one set of considerations, or if you're looking to add non-equities then that's another (bonds for eg.). That's why I'm a bit confused by your considering all of cash, FTSE100 and gold - they're very different asset types!

Albermarle

It depends to some extent on what is your current asset allocation.

Cash vs equities vs bonds vs other ( including property not your home )

If the cash is <10%, many would say best to keep it in cash. If it was 40% then most would say that was too much.
Any figure inbetween would be debatable and dependent on your age/ working status/risk tolerance.

fizio

Thanks for the responses...

Current assets allocation is roughly 50% pension/isa 30% BTL 20% cash (exc emergency fund) of a 7 figure total. The pension/isa is broadly 80% global trackers and 20% bonds. 

I understand the asset allocation methodology and would normally have split the excess cash into various funds and poss 1 more btw but I am looking at the current environment and the value of the pound is putting me off investing in anything outside uk and high interest rates are putting me off another BTL so my think was UK FTSE 100 or maybe UK bonds or leave in the bank for a while.. 

I am in 50's so not looking at the very long term.. 

InvesterJones

If happy with allocation to date then I'd probably consider same proportion again into bonds and equities - another market to consider would be any whose currency has also fallen like the pound has, for example Japan.

Linton

The current value of the £ should be irrelevent to your choice of investments.  Your reasons and timescale for investing should be sufficient to identify appropriate funds.

DannyCarey

RIP GBP.......