As I sit here watching what appears to be a momentous decision being made by the people of the UK to Brexit, of course I have a lot of very concerned clients and their concerns are not unjustified.
Those of you who have followed my posts, I always thought it would be a Remain vote. Having just seen that most book makers are offering 33/1 or better for a Remain vote, I would say the race is run and Brexit is happening.
Many of you who are working overseas and have UK commitments, of course this becomes a good thing as your USD buys you more GBP.
Markets have reacted, with sterling at the moment at 1.33, not as low as some commentators anticipated. I would say the market has factored in a Brexit given the aforementioned odds.
These 8-10% swings are of course scary and we will see the FTSE take a bit of a beating tomorrow but as we strive to achieve long term capital growth, this doesn’t mean that Diageo will sell less bottles of Smirnoff or Rolls Royce less plane engines….Life goes on.
It also highlights why having an option to protect yourself from currency fluctuations is important. I work with a solution here, please get in touch to find out more and if you have any concerns I am happy to have a chat……..