Quote:
Originally Posted by Damien
Sterling is not Bitcoin.
If this were true that sterling would have eventually recovered in the two years following the vote as people would think the underlying value of the currency is stronger than the speculators think. It didn't.
Speculation is only part of what drives currency and stock markets. There are other types of investors who make longer term bets and valuations of what they're buying. The currency market itself is also driven by the performance of the underlying economy and the companies within it, the economic policies of the central bank/government in charge of it and the confidence people have in the stability of the government.
It's hard to precisely value a currency, people a look more experienced than us find it hard to do, but it's just not all random speculation. Some of it is but those people do short term bets.
|
When I asked my accountant and Financial Adviser what the likely outcome would be to the pound in the event of a no deal Brexit, both said that, in reality, nobody knows.
As a result, they are advising people to hedge their bets.