4 powerful reasons to get into british markets now, before the brexit vote – marketwatch

LONDON (MarketWatch) — Fifteen days and counting down. Exchange rate definition business With only slightly over two weeks left to go until the referendum on whether Britain stays inside or gets out of the European Union, the markets are getting increasingly nervous about the result.

The polls are narrowing, and the scare stories about what might happen if Brexit is the outcome are getting more terrifying by the day. International currency definition Not surprisingly, British assets, whether it is the currency, bonds or equities, are about as popular as a sack load of second-hand Jeb Bush campaign buttons — and with about as many buyers.

In truth, there are four reasons for getting into the British markets ahead of the June 23 vote, rather than after it. Currency exchange risk definition For all the hype, the U.K. Currency definition for kids will almost certainly stay. Currency markets definition If it does, it will have a settled and improved relationship with its main trading partner. Definition of currency exchange rate If it leaves, it will make far less difference to the British economy than everyone fears. Local currency definition And the sector of the economy that will be least impacted will be the giant multinationals that dominate the FTSE-100

As the vote neared, the polls were always likely to draw closer.


Multi currency account definition One from ICM earlier in June showed the Leave camp on 48%, with 43% backing Remain. Stable currency definition A TNS poll showed 43% for Leave and 41% for Remain. Foreign currency definition wikipedia Other polls show the Remain camp still ahead, but only by a very narrow margin, and with the Brexit side of the argument gaining ground. Cultural currency definition The momentum at the moment appears to be with those that want to get out.

has taken a hit as the latest polling numbers have been published, and we can expect to see a lot more of that over the next couple of weeks.

Global investors have decided it is too difficult to call, and have started to give the market a wide berth. Devalue currency definition According to a Bank of America Merrill Lynch survey, allocations to the U.K. Term currency definition markets have dropped to their lowest level since way back in 2008. Currency fluctuation definition They are a net 36% underweight, a massive level for one of the world’s major economies.

Of course, it is hard to blame them for that. Definition of foreign currency Everyone from Prime Minister David Cameron to the Bank of England Gov. Home currency definition Mark Carney to every strategist from the London investment banks has told them that leaving the EU would be a disaster for the British economy. Foreign currency exchange definition It will be frozen out of its main export market, and foreign investors will flee the country.

Who would want to own British assets when that is in store? Well, anyone who doesn’t mind figuring through the other side or the argument. Transaction currency definition In fact, there are four reasons to get into the U.K. Exchange rate volatility definition ahead of the vote.

The track record of opinion pollsters has been getting worse and worse — perhaps because the decline of landline phones means they can’t reach ordinary people any more. Currency conversion definition The Brexit polls are likely to be even worse than all the others, for the simple reason they have no experience of a vote like this, and no idea who to ask or how to weight their answers. Meaning of devaluation of currency The solution? Ignore them, and concentrate on the campaign instead.

To anyone who follows it, David Cameron has run a brutal, unpleasant, yet effective campaign for the Remain camp. Meaning of currency devaluation He has focussed relentlessly on scare stories and lurid predictions about what will happen if the U.K. Exposure to currency risk definition and measurement leaves. Foreign exchange account definition The Brexit campaign, by contrast, has been a shambles. Currency account definition Out has no clear leadership, and can’t settle on a single message. Currency rate definition It has been completely unable to reassure people the economy will be fine. Currency depreciation definition From that, there can only be one conclusion. Presentation currency definition Remain will win comfortably.

Second, if the vote is for Remain come June 24, two things will follow from that. Fx risk definition First and most obviously, there will be a big relief rally. Paper currency definition The fears over what might happen will evaporate, and investors will be keen to rebalance their portfolios, and push their holdings of British assets back up to normal levels.

Beyond that, however, investors will also start to notice that the issue of British membership of the EU will have been settled for a generation, and that the U.K. Currency spread definition also got a pretty good deal out of its renegotiation, with all the benefits of the single market, but an opt-out from further integration. Foreign currency definition That will help the economy in the years ahead.

Sure the FTSE will take a hit, and sterling will dive. Currency risk definition But both will bounce back very quickly. Foreign currency risk definition Why? Because the EU does not make that much difference to the British economy. Convertible currency definition The U.K. Definition of currency in economics will lose a bit of trade with Europe if it leaves, and some investment. Devalue currency meaning But it will get back some money it sends to Brussels, and will get rid of a few meddlesome regulations. Exchange rate definition wikipedia Net-net? It will be back where it started.

Finally, the one sector of the economy that it will make least difference to will be the multinationals on the FTSE-100 index. Exchange rate definition pdf Made up of huge mining conglomerates, drug companies and banks, these are businesses for which the EU is a relatively small market. Currency ratio definition And anyway, they can easily afford to have an office in Frankfurt or Paris if they need to maintain access — they probably already have one.

whether the U.K. Definition of currency risk is in or out? Of course not. Currency exchange definition Very soon people will realize that was a stupid reason to sell the shares, and start buying them back.

The hysteria around the vote will get louder and louder all through the next two weeks. Currency fluctuations definition And yet, the result is already fairly clear. Currency of information definition And if the U.K. Euro currency definition does leave the EU, it won’t make much difference anyway. Third currency definition Those are powerful reasons for buying before June 23, not afterwards.

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