“Pound hits all-time low against dollar after mini-budget rocks markets”

Sep 27, 2022 | Economy, Inflation

It may have felt a rubbish year if you have funds invested with us. If you took the plunge this time last year, you’ll be thinking (as we usually warn that you might) ‘what on earth have I done?’. But don’t  panic, at least as far as your investments are concerned, at news of the plunging £ and the effects on markets of Truss- and Kwasi-enomics. Our main, recommended portfolios currently hold an average of only just over 20% in the UK; it’s what happens in the rest of the world that’s more important. And fund managers ‘hedge’ their exposure to currencies, which means that when they first buy shares in, for instance, the US, they make an each way bet on the value of the £ against the $ so that any changes have no effect. Also remember that, despite everything that’s happened, you’re still around 5x better off in the average medium risk fund, than you would be had you left your money in the best deposit account for the last 5 years. Of course, call if you’re still worried, but remember, too, that you’ve only lost if you sell when everything is down. And what goes down does, and will go up. If, of course, you’re selling your holiday home in Florida (as is one luck person I spoke to this week), happy days; lots more £s for your $s!

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