Post by Fletchsmile on Oct 27, 2016 16:51:55 GMT 7
Neil Woodford Q&A on sterling weakness, interest rates and more
24 October 2016 | A A A
Following June’s vote to leave the EU the UK economic landscape has undoubtedly changed. Sterling has weakened markedly and inflation is predicted to spike as a result. Interest rates have been cut and quantitative easing expanded. Meanwhile the UK stock market has been hitting all-time highs.
With this in mind we asked fund manager Neil Woodford, who is known for making astute calls on the economy, to share his current views.
Q. Should investors be concerned about the fall in sterling?
No, I don’t believe investors should be overly concerned about the fall in sterling. Although the outcome of the referendum is seen as the catalyst for sterling’s weakness, in my view the fall was inevitable. The pound has looked overvalued for years when you consider the many imbalances that we’ve seen building up in the economy for a very long time now.
Over the last few weeks, the market has been trying to discount the prospect of a ‘hard Brexit’ into sterling, even though it is uncertain whether this outcome will prevail or not, and will remain so for some considerable time. A hard Brexit probably represents a worst-case scenario for the pound, suggesting that any other outcome could be positive for the currency.
contd... at the link below
, Engerlish is the only accepted language on this forum, coz the red necks reading are too effin dumb to understand another language.
