Taking Action - Very Worried About GBP...
Discussion
I know it's already stuffed (down 30%), but looks like it could become ALOT worse against other major currencies. Given this, has anyone started to move cash into USD/EUR?
I'm moving £120k of our reserves first thing Monday and thinking a split with EUR and USD. The only upside is that my major revenue stream comes from the US - and at the minute we're making more as a result of the declining pound.
I'm moving £120k of our reserves first thing Monday and thinking a split with EUR and USD. The only upside is that my major revenue stream comes from the US - and at the minute we're making more as a result of the declining pound.
sa_20v said:
I know it's already stuffed (down 30%), but looks like it could become ALOT worse against other major currencies. Given this, has anyone started to move cash into USD/EUR?
It's already happened. The markets decided months agothat Mr G Brown's experiment has failed and got out of the UK
big time.
Hence the 30 % fall.
sa_20v said:
I'm moving £120k of our reserves first thing Monday and thinking a split with EUR and USD. The only upside is that my major revenue stream comes from the US - and at the minute we're making more as a result of the declining pound.
I think you are shutting the stable door after the horse has gone.Mind you, if you want safety, would a broader range of currencies
than just two be better ?
Maybe a four way USD / EUR / JPY / CHF mix ?
dcb said:
I think you are shutting the stable door after the horse has gone.
Mind you, if you want safety, would a broader range of currencies
than just two be better ?
Maybe a four way USD / EUR / JPY / CHF mix ?
Quite, but the money has only just come back from working hard in the US - we've not lost money from the slide of the pound, but actually benefited from it so far. I've a very dim view of Gordon Brown and his cronies, and would hate to see such amounts wiped out due to the continued fall of the currency.Mind you, if you want safety, would a broader range of currencies
than just two be better ?
Maybe a four way USD / EUR / JPY / CHF mix ?
Really want to know what others would do in the same situation.
It really depends on your appetite for risk.
If your a gambler (high risk) then you would leave it in your base currency (GBP) and wait for the GBP to strengthen. If it works as planned, you will gain your 30% back again!
If you dont want to take any risks, you would hedge your position with a diversified basket (say all the majors - CAD, USD, EUR, JPY, CHF). This means taking a loss... but making sure you dont lose anymore if the GBP continues to collapse.
There is no right or wrong answer because no one can predict the future... it just depends on how much appetite you have for risk.
If your a gambler (high risk) then you would leave it in your base currency (GBP) and wait for the GBP to strengthen. If it works as planned, you will gain your 30% back again!
If you dont want to take any risks, you would hedge your position with a diversified basket (say all the majors - CAD, USD, EUR, JPY, CHF). This means taking a loss... but making sure you dont lose anymore if the GBP continues to collapse.
There is no right or wrong answer because no one can predict the future... it just depends on how much appetite you have for risk.
te than realised) what is everyone else doing with large lumps of GBP?Gassing Station | Business | Top of Page | What's New | My Stuff