In a previous post I wrote about my strategy to ride the Brexit event.
I explained about the high volatility future for the pound, that could lead to some losses on the currency.
But I also explained that I was beginning to buy sterling, because I thought that it would recover in the long term vs euro.
The Basic strategy was:
1) Buy between 0,85-1 vs euro (gradually. First 0,85- Second 0,90 and so on)
2) Sell sterling strength before art.50 triggering (ideally in area 0,80 that wasn't reached)
Because of recent flash-crash, yesterday I bought for the second time. At the moment I am at about 30% of my ideal £ sterling allocation. I am not planning to buy other pounds before to know if there will be the trigger in the first quarter 2017, unless eur/gbp doesn't reach area 0,95-1.
I'll hold position unless eur/gbp doesn't fall to 0,80
AS a reminder, I think that Brexit will be a long journey. This investment could be the same. Ideally the sterling position could be held for at least 1-2 years. I bought EIB bonds in £ with very short duration
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