UK funds feel the Brexit effect, but FX remains best barometer
By International Adviser, 16 Jun 16
With Brexit now less than two weeks away, the volume of commentary finding its way into our sister publication Portfolio Adviser’s inbox is growing rapidly. For your convenience they have placed all the most interesting investment ideas into one place .
A Binary outcome – Lowcock
While a decision to leave will have a much more significant impact on markets than a vote to remain in, investing ahead of the actual vote with a view that the outcome will be a Brexit is a brave decision,” argues Adrian Lowcock, head of investing at AXA Wealth.
“A vote to leave will likely cause sterling and UK stock markets to fall as international investors look to reduce their risk and exposure to the UK by selling shares and other investments… [it] would also be felt across Europe.”
“Mainland Europe’s recovery is still fairly weak and a leave vote could easily cause further problems amongst the remaining countries. Sterling has fallen against the Euro whilst it has held up better against the US dollar. In the event of an exit vote I would expect sterling to fall more against the US dollar and less so against the Euro as that currency gets caught up in the aftermath,” Lowcock said.
Tags: Axa | Brexit | Hargreaves Lansdown | Lipper | Neil Woodford
