How Will Brexit Affect My Finances?


#1

How will Brexit affect my finances? I have a stock portfolio f roughly $2.5m and an allocation of cash of roughly 500k.

I have begun to plan for my financial future and so, I would like to know how I can prepare myself financially for brexit!


#2

Well firstly, be aware of the IMF bailout that could be triggered as a result of hard Brexit!

But apart from that…

Pound
Be aware of the pound inflating. if you are are holding cash, it’s very likely that you will see significant inflation. Be aware of this.

In truth, you would be mad to hold pounds actually!

This has already begun and inflation is currently at roughly 3%

Stocks
For reasons mentioned above in gthe IMF post, you would be mad to be holding stocks in the financial services sector.

UK stocks on the whole do not look great though.

Jamie Corbyn Effect
Corbyn has always rallied for nationalisation in almost every form. Do not think of investing in rail services, bus services, utility companies or postal services!

There are also infrastructure funds which rely on government support to generate stable returns. Be wary of these as well!

Also expect a hit to the pound and inflation. Lots of inflation…