Five views on a ‘no deal’ Brexit
By Sebastian Cheek, Kristen McGachey and Jessica Tasman-Jones, 3 Aug 18
Experts look at how investors can position themselves if the UK crashes out of the EU
“If markets price out any form of [free trade agreement] outcome, the rotation will be quick and significant,” said Aberdeen Standard Investments’ Milligan.
“As since mid-2016, sterling will be the canary in the coal mine; the initial fall could be another 10%. Profit translation and competitive effects would encourage a rotation out of FTSE 250 into FTSE 100 stocks, out of exposed sectors such as domestics (a replay of the consumer squeeze), financials facing higher borrowing costs, and cyclicals facing higher tariffs, into globally exposed companies with non-EU sales.”
Tags: Abrdn | Chase De Vere | Federated Hermes | Old Mutual | Rathbones
