Is anyone doing anything different wrt to the weaker pound?

[Phooey]

I occasionally top up a little on my S&P500 etf but as the pound has weakened further I would now be getting less for my money, and if the pound strengthens again it will devalue my holding - which had me thinking about my regular monthly investment into my global etf fund too. Is anyone else thinking about the effects the weak pound is having on US equities?

[anonymous-user]

Yes definitely. I wanted to buy FedEx with GBP last week but held off for precisely the reason you describe. About 2/3 of my portfolio is already exposed to USD so the movement in Fx has been great for me (on paper) . Not buying any more US stocks though until I am actively looking for more USD exposure.

[Jon39]

Yes the recent fall in GBP value has been in the region of 8%.

There are some large UK companies which always do their accounts in US Dollars. Eg. BP; HSBC; Shell etc.
This FX movement of course helps their profits and also increases UK holders dividends, which are declared in $, then converted into £ a short time before each payment.

Edited by Jon39 on Friday 6th May 16:45

[Phooey]

It's an interesting one, and something I've never paid attention too until the past few weeks. It makes US stocks (which are still expensive) even more expensive.. and if the pound strengthens I'm exposed further. Is it counterproductive to consider investing in the UK for a while, a FTSE 250etf for example?