Asset Allocation 

Cheap – for a reason

Chris Dillow

Chris Dillow
Cheap – for a reason

Despite its recent rise, the important fact about sterling is that it is still low. If we adjust for differences in consumer price levels to get a measure of the real exchange rate the pound is 17 per cent below its post-1999 average against the US dollar and only slightly above the post-1985 low it hit soon after the EU referendum. And even against the euro – which has been weakened by the region’s negative interest rates and feeble economy – sterling is 4 per cent below its post-1999 average.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now