By George Prior
The pound is currently looking undervalued – despite the Brexit chaos – and can be expected to appreciate, forecasts the CEO of one of the world’s largest independent financial advisory organizations.
Nigel Green, the founder and chief executive of deVere Group is speaking out as weeks of talks resumed between the two main political parties in Westminster following the Easter break.
Mr Green comments: “Despite Theresa May securing an extension from the EU, the Brexit impasse seems as intractable as ever.
“The talks between the government and the official opposition seem to be on the verge of collapse.
“Nothing has of any substance been achieved and everything remains up in the air.”
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“However, the one thing that does seem a relative certainty is that there will be some form of soft Brexit. The longer the Brexit process takes, and it is clearly taking a long time, the closer the final relationship between the UK and the EU will be.”
He continues: “Against the backdrop of a likely soft Brexit, the pound currently looks undervalued.
“When Brexit is finally delivered, investors are advised to be on the watch for a rally in the pound, UK stocks and a spurt in economic activity as sidelined household and business spending kicks in.”
He goes on to add: “Since the Brexit referendum took place, the pound is down 14 per cent against the euro and 13 per cent against the US dollar compared to the day of the vote in June 2016.
“In the new environment, should a soft Brexit be delivered, there is a possibility that the pound could rise to pre-referendum levels against the pound.”
Mr Green concludes: “Brexit, amongst other geopolitical and economic factors, drive investors returns. It’s therefore crucial that investors mitigate risks and capitalise on the inevitable opportunities of shifting environments by ensuring that their portfolios properly diversified.”
About
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.