Tuesday, Apr 22, 2008
UK economy and Sterling to come under more pressure
fundstrategy: Managers display deep pessimism over British economy
Global fund managers are taking an aggressively underweight position in British equities, according to the latest monthly survey from Merrill Lynch. It is not clear to what extent the extreme pessimism on the British outlook is motivated by concerns over economic growth and to what extent worries about sterling are responsible.Managers seem to have an extreme dislike of sterling. It has already fallen more than 13% against the euro over the past six months - comparable to the drop against the Deutschmark when Britain was forced out of the Exchange Rate Mechanism in 1992. It has also fallen 17% against the yen over the same period. Despite these falls, a net 52% of managers still say that sterling is overvalued.
Posted by jack c @ 04:12 PM (317 views) Add Comment
3 Comments
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1. alan said...
"Despite these falls, a net 52% of managers still say that sterling is overvalued". Perhaps this is the reason for their reluctance to invest.
2. Slysmiles said...
This country is going to find itself in a financial stranglehold. Falling currency, rising inflation, massive money velocity slowdown and debt destruction with reduced tax receits.
Throw in asset deflation and a large personal and national debt and this really is as bad as it gets. God help us all, homeoweners or not.
3. bystander said...
oh f*ck!!!!!!!!!!!!!!!!!!!!!!!!!!!