Sterling ways to profit from a plunging pound – MRM’s weekend news round-up
Sterling may be weak but the spirit of maximising opportunities to profit from this is certainly willing, judging from the weekend money sections.
The FT’s Ellen Kelleher led the pack with the belief that a falling pound will boost UK shares and provide a ‘competitive boost’ to smaller exporters in the FTSE 250. Kelleher continued on this theme in the FT Money section, exploring how sterling’s slide against the dollar and the euro are positive for buyers of UK equities and income funds, with the share prices of some British companies already rising in response. A note of caution was flagged, however, for bond and gilt fans due to increased pressure on the Bank of England to raise interest rates. Last but not least, Kelleher quotes an S&P poll indicating that a wave of takeover activity is expected in the UK smaller companies sector as the weak sterling allows overseas groups to buy their UK rivals at a discount.
In a nod to a ‘glass half full’ approach, the Sunday Telegraph’s Emma Simon leads the section with a guide on how to profit from a weak pound, outlining options from buying currency online to spread betting.
In yet another take on things the Mail on Sunday’s Jo Thornhill notes the consequences of a falling sterling value for holidaymakers, with credit and prepay cards touted as the best solutions to counteract increasingly costly trips abroad.
Elsewhere, the ‘plight of savers’ theme rolled on this weekend with research for the FT by Defaqto revealing that in spite of restrictions on withdrawals thousands of savers in notice accounts are earning lower returns than the average 0.86% paid on instant-access accounts. The Sunday Times’ Ali Hussain points out there may be light at the end of the tunnel in the form of opening high paying current accounts, with many now opening multiple accounts with different banks and ‘drip feeding’ in money.
All in all, the sentiment is keep the chin up and don’t let the thought of all those upcoming shopping trips to New York and Paris get you down! Ok, will snap out of the daydream now…
Coverage scores on the doors are as follows:
Credit cards 5%