Will wealth managers be caught out by currency markets in 2017?

Sterling rebound

Is sterling undervalued? Will 2017 see it rebound? We believe the fall in the pound is overdone and the pessimism surrounding the post-Brexit economy is even more exaggerated, writes Tavistock Wealth director Ben Raven.

Christopher Peel, Tavistock's CIO, references countries such as the US, China and Australia as queuing up to negotiate separate trade agreements with the UK, potentially increasing the demand for the pound in the future.  We believe the UK should retain the vast majority of its trade flow with the EU, given its proximity and the fact that it imports more goods to the continent than it exports.  According to Peel, "once the speed and trajectory of the Brexit timeline have been defined, Sterling can easily recover much of the 15-20% that it has lost versus the US dollar and euro in the ...