The primary loser from Brexit is sterling, and it doesn’t look as if the currency is set to recover its losses anytime soon. With a current account deficit comparable to the size of some small emerging market economies, a political outlook plagued with uncertainty, a dovish central bank and a potential recession on the horizon, sterling is going to be under pressure for the foreseeable future. UK Corporate Spending Collapses After Brexit Analysts at HSBC believe that a weaker pound is almost a requirement’ for the UK. Specifically, analysts believe that GBP must weaken further to help Britain’s rebalancing progress…
HSBC: GBP Needs To Fall Further With a current Account Deficit Comparable To Some Small EM Economies
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk