Newbie Intro: Planning to move back - Brexit impact?
Oct 8th 2016, 2:46 am
#46
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Re: Newbie Intro: Planning to move back - Brexit impact?
The FTSE isn't in dollars so that is also moot. Obviously it will have dropped if you want to make an arbitrary conversion into dollars.
The fall in the pound may have made shares cheaper for overseas investors, but the main investors in UK listed companies will be UK entities and shares did not become cheaper for them on June 24th.
The fall in the pound may have made shares cheaper for overseas investors, but the main investors in UK listed companies will be UK entities and shares did not become cheaper for them on June 24th.
ONS statistics on UK share ownership - Business Insider
For the overseas investors, well the shares they have bought since June are worth less to them every day at the moment because they will ultimately have to cash them in in pounds and then use pounds to buy back their own currency. So if overseas investors are buying UK stock in droves then the overseas investors must also expect sterling to recover. (As do I).
Oct 8th 2016, 3:35 am
#47
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Re: Newbie Intro: Planning to move back - Brexit impact?
No, the majority of investors are overseas. The fall in the pound is therefore anything but moot:
ONS statistics on UK share ownership - Business Insider
As do I - eventually. Essentially buying UK shares at this point is a punt on sterling.
ONS statistics on UK share ownership - Business Insider
As do I - eventually. Essentially buying UK shares at this point is a punt on sterling.
So FTSE up, sterling expected to recover. All looking good for OP
Last edited by Bermudashorts; Oct 8th 2016 at 3:40 am.
Oct 8th 2016, 3:59 am
#48
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Re: Newbie Intro: Planning to move back - Brexit impact?
Which assumes that the FTSE will remain "up" if and when the pound recovers.
Last edited by Giantaxe; Oct 8th 2016 at 4:01 am.
Oct 8th 2016, 4:10 am
#49
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Re: Newbie Intro: Planning to move back - Brexit impact?
No. If one is thinking of converting dollar assets into Uk shares, converting the FTSE index into dollars most certainly isn't moot; it's what you're making your judgement call on as to the value of those shares versus other assets. A major reason FTSE shares look attractively priced to such buyers right now is that the index is lower in dollar terms than it was at the beginning of the year.
Which assumes that the FTSE will remain "up" if and when the pound recovers.
Which assumes that the FTSE will remain "up" if and when the pound recovers.
The exchange rate alone would be sufficient to indicate to an overseas investor that they might be able to buy UK stocks on the cheap.
Looking at an arbitrary conversion of the FTSE index into $ at two different points of time is clouding two distinct features of underlying business performance and exchange rates which would be better considered separately.
Oct 8th 2016, 4:20 am
#50
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Re: Newbie Intro: Planning to move back - Brexit impact?
If you are a dollar investor who expects eventually to sell back into dollars, it's exactly what you need to consider.
Last edited by Giantaxe; Oct 8th 2016 at 4:25 am.
Oct 8th 2016, 10:58 am
#51
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Re: Newbie Intro: Planning to move back - Brexit impact?
Oct 9th 2016, 9:12 pm
#52
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Oct 9th 2016, 9:22 pm
#53
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Re: Newbie Intro: Planning to move back - Brexit impact?
Perhaps, but only one side really is.
I'm glad that "transitional arrangements" will be made in April, but it's quite unlikely given that the "transition" will have no chance of being defined by then.
"Oh duckies, whatever we do to destroy each others position won't have any affect on bits of the status quo?"
Riight.
Last edited by Novocastrian; Oct 9th 2016 at 9:27 pm.
Oct 9th 2016, 9:28 pm
#54
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Re: Newbie Intro: Planning to move back - Brexit impact?
Absolutely we can, I'm just amused listening to the continued to and fro on the subject on this thread. I learned long ago to worry only about the things within my sphere of influence. In my career I had to put up with a couple of big projects that I argued strongly against, but once the decision had been made to proceed then I did my utmost to ensure they were implemented as well as possible.
Oct 9th 2016, 9:39 pm
#56
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Re: Newbie Intro: Planning to move back - Brexit impact?
Absolutely we can, I'm just amused listening to the continued to and fro on the subject on this thread. I learned long ago to worry only about the things within my sphere of influence. In my career I had to put up with a couple of big projects that I argued strongly against, but once the decision had been made to proceed then I did my utmost to ensure they were implemented as well as possible.
Oct 9th 2016, 9:41 pm
#57
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Re: Newbie Intro: Planning to move back - Brexit impact?
Perhaps, but only one side really is.
I'm glad that "transitional arrangements" will be made in April, but it's quite unlikely given that the "transition" will have no chance of being defined by then.
"Oh duckies, whatever we do to destroy each others position won't have any affect on bits of the status quo?"
Riight.
I'm glad that "transitional arrangements" will be made in April, but it's quite unlikely given that the "transition" will have no chance of being defined by then.
"Oh duckies, whatever we do to destroy each others position won't have any affect on bits of the status quo?"
Riight.
Oct 9th 2016, 9:45 pm
#58
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Location: Europe (to be specified).
Posts: 30,259
Oct 9th 2016, 10:19 pm
#60
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