Quote:
Originally Posted by Bjorn_Tasty1
Cause else the next banking crisis could destroy Europe.
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Well said. The sinking of Deutsche Bank alone has the potential to destroy Europe. We hope it won't happen but it's looking really wobbly right now.
The pound is expected to go lower but many believe that before it does, it is likely to rebound to the upside. My best "suggestion" (not advice) to people with pound sterling right now is that let's say the pound bounces for a while higher versus USD from where it is now $1.22 and goes up to around $1.35.
Maybe at that point you could diversify:
(1) 10% of your liquid cash into gold and/or silver, and;
(2) 30% of your liquid cash into US dollars, and;
(3) 60% would stay in the form of UK pounds.
That would create a decent hedge position because if the pound/silver/gold goes down, it generally does so against the USD. If on the other hand, the USD goes down, you benefit on the gold/silver portion and also your pounds. If history is any guide, it's not likely that all three go down at the same time.