As the pound nosedives and the UK faces a looming recession, those with UK financial assets – including UK pensions, bonds and sizeable holdings of sterling – should consider international options to protect their wealth.
This is the message from the chief executive and founder of deVere Group, Nigel Green, after the Queen accepted UK Prime Minister Boris Johnson’s government request to suspend parliament from mid-September. The move now reduces the time available to MPs to block a no-deal Brexit.
Mr Green affirms: “The already Brexit-battered pound has taken yet another hammering thanks to Boris Johnson’s highly controversial suspension of parliament.
“Sterling is down more than 0.5% against both the euro and U.S. dollar as a result of the political manoeuvring.
“The pressure will remain on for the pound for the foreseeable future as the possibility of a no-deal Brexit increases. Should the UK leave with no-deal, the pound is likely to remain weak for several years until the country and the bloc readjusts.
“In addition, the likelihood of a general election is weighing on the currency.
“And should a Corbyn-led Labour party win such an election, there will be even more longer-term bad news for the pound. His anti-business rhetoric, and high tax and low-profit policies would lead to a considerable and sustained selling of the pound.
“There’s also now the serious possibility of a general strike, mass protests and civil disobedience as political uncertainty intensifies.”
He adds: “This critical period for Brexit negotiations is also happening as the UK economy is potentially on the brink of a harmful recession which will deliver another bloody nose to investment, trade and confidence in the UK.”
Mr Green continues: “Looking at the nose-diving pound and a looming UK recession, the outlook is somewhat bleak in Britain. Those with UK financial assets – including UK pensions, bonds and sizeable holdings of sterling – should now perhaps consider the available international options to protect their wealth.”
Earlier on Wednesday, the deVere CEO noted: “Boris Johnson’s decision to suspend parliament will have far-reaching economic effects, many of which will not be known for years to come.”
He concludes: “Those who are serious about building and safeguarding their assets should explore legitimate overseas options as the UK moves into an unprecedented crisis.”