Reasons to be cheerful 1 – 2 – 3

It feels like a lot has happened after 23rd June’s Brexit vote and since then the news flow has been persistently miserable – national footballing humiliation courtesy of Iceland, currency turmoil courtesy of the pound, political turmoil courtesy of the government and opposition parties and even the weather applying the coup de grace with the wettest June on record – as if anything else was needed to cheer up a despondent nation.

This Sunday, Becky Barrow, Money Editor of the Sunday Times quoted Lenin on the subject to illustrate this concatenation of gloom, “There are decades when nothing happens and there are weeks when decades happen.”

You would be forgiven in this climate for missing the good news for investors over the course of July with the US S&P 500 index hitting all-time highs and the UK’s FTSE 100 at 11 month highs and re-entering bull market territory.

Although the pound has seen 31 year lows against the dollar and dipped below 1.30 for the first time since 1985 for some this has an upside – particularly for people with US dollar portfolios but whose future lies in the UK with sterling expenditure and liabilities. June saw an improved return for those with a typical USD portfolio when viewed in sterling terms. Even for those with sterling denominated portfolios the weakness of the pound has boosted the sterling returns from international securities demonstrating the benefits of globally diversified portfolios. This positive investment performance has been maintained in July and to cap it off Andy Murray even managed to win Wimbledon auguring in a heatwave last week!

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