The outlook for the pound & what investors should do

13 min Read Published: 14 Jul 2016

As a result of the Brexit vote the value of the pound versus the dollar has now become the proxy for investment market sentiment, particularly in the UK. The pound's problems have been compounded by those investors who are actually shorting the pound to try and offset losses elsewhere. The falling pound has provided a buffer for a lot of UK investors to insulate them from the worst of the Brexit fallout and other macro issues. The more shrewd (such as 80-20 Investor members) have even been able to make money from the fall in the pound. So will the falls continue or are we in for a shock?

Why the value of the pound matters

In last week's newsletter I explained why it's now all about the pound. It would appear that the national media are only just cottoning on to this fact. I've been contacted by a number of national newspaper journalists this week asking me how important hedging against a weak pound is for investors right now.

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