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Whats Happening To The £ Against The $

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The strength of sterling is heavily reliant on HPI. The world knows that HPI has been underpinning Gordon's "economic miracle" and until it shows signs of a significant correction sterling will remain strong. I am STR and almost 100% invested in US $ and my bet is that sterling and house prices will each depreciate by 20% over the coming 12 months. Why? Because the Fed will continue tightening making the $ more attrcative to investors and the US is not as dependent on HPI. As Al Greenspan said, the "froth" in the US house markets is confined to the coastal areas where significant corrections are expected and disregarded as economic disasters. Whereas the UK has universal HPI and is dependent upon further inflation to keep momentum going. Once the pyramid stops growing the house of cards collapses and everyone gets to buy a home at levels that are commensurate with earnings.

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The strength of sterling is heavily reliant on HPI. The world knows that HPI has been underpinning Gordon's "economic miracle" and until it shows signs of a significant correction sterling will remain strong. I am STR and almost 100% invested in US $ and my bet is that sterling and house prices will each depreciate by 20% over the coming 12 months. Why? Because the Fed will continue tightening making the $ more attrcative to investors and the US is not as dependent on HPI. As Al Greenspan said, the "froth" in the US house markets is confined to the coastal areas where significant corrections are expected and disregarded as economic disasters. Whereas the UK has universal HPI and is dependent upon further inflation to keep momentum going. Once the pyramid stops growing the house of cards collapses and everyone gets to buy a home at levels that are commensurate with earnings.

So your banking on the US$.

Short term you may be right but long term i think the US$ is gonna be worse than the £. Swiss Franks or Euros may be good though.

reason being US balance of payments problem and budget deficit.

just my opinion

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So your banking on the US$.

Short term you may be right but long term i think the US$ is gonna be worse than the £. Swiss Franks or Euros may be good though.

reason being US balance of payments problem and budget deficit.

just my opinion

Not sure what happened, seemed to have an upward blip after the pretty poor non farm payroll and then just fell thru the floor!

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I go along with that. The dollar and the pound are both screwed, but for different reasons. The pound is going to fall first, so there should be a period over the next 2 years or so when the dollar becomes quite a bit stronger than the pound. But then the dollar is just going to dive as well.

I have a big vested interest in all this as I earn in dollars!

frugalista

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with you there realist.....although io disagreewith the choice of currency

I'm backing the yen

Have seen JPY fall to 207 for the first time in my memory. Good time for me to buy those Japanese CD's I've been putting off for a while but cannot think of a concrete reason why this should happen now? (Mind you I couldn't think of a reason when it was at about 160/pound around the end of the dotcom bubble either so what do I know...

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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