The Asset Allocator: The UK's Lose-Lose Elections (Podcast)

Summary

• The British pound hit a 31-month high against the euro last week, presumably because the Conservatives maintain a healthy lead over Labour in this week’s elections.
• It’s understandable why investors don’t want Labour, which promises to nationalize much of the British economy and introduce a slew of different taxes.
• But why should the pound rally over the victory of a government that will finalize Brexit, the very reason the pound has crashed these past three-and-a-half years?
• Investors should just stay away from sterling-based assets altogether.

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The British pound hit a 31-month high against the euro last week, presumably because the Conservatives maintain a healthy lead over Labour in this week’s elections.

This podcast (5:54) highlights the reasons why investors will not come out ahead in this election, no matter the outcome.