Brexit: Historic Pound-ing Continues

Last week the British Pound touched a historic low against a basket of global currencies according to the Bank of England. The uncertainty around Brexit has resulted in an almost 18%* decline in the Pound versus the U.S. Dollar since the start of the year, a 31-year low. The process has been volatile, including the 2-minute flash crash. Even more incredibly, the Sterling has been pounded against the Euro by as much as 22%* since the turn of the year. Continue reading “Brexit: Historic Pound-ing Continues”

Lost Savings Habit

In my last article, Negative Interest Rates: Who’s Interested?, I touched upon the potential negative impact the current interest rate environment can have with regards to asset bubbles and large debt burdens. However there is also scope to focus on the impact low interest rates can have on the average household. Continue reading “Lost Savings Habit”

Negative Interest Rates: Who’s Interested?

Wednesday marked a key moment for the German 10-year government bonds (or bunds as they are known). While they have been trading at negative yields for a while now, it was the first time that a new Bund was issued at a negative yield. This implies that investors now effectively pay Germany to borrow their money. Continue reading “Negative Interest Rates: Who’s Interested?”