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Time to Cross the Pond

When markets get overly volatile, the natural thing to do is freeze up, and then either obsessively worry about conditions or avoid the situation completely. It’s just natural. What’s also natural is that when things get dire, opportunities sprout up all around us.

Brexit. You’ve been hearing about it a lot lately. Britain’s date with exiting the European Union is fast approaching (March 29th – 11pm Greenwich Time), and the news cycle has been dominated by UK Prime Minister Theresa May and the British Parliament. I promise – there is nothing I can add to the topic, but I will say that this may be one of those opportunities you want to take advantage of.

Have you traveled to London? Wales? Anywhere in the UK? Maybe you’ve visited a dozen times. If so, you know there is still always something left unseen. Is London an expensive city? Absolutely, and that’s exactly why this is a big deal. Now is the time.

I recently found this receipt from a 2013 trip to the UK. Sidebar: the TKTS ticket booth (in Leicester Square) is a great place to pick up discounted tickets for London’s Theatre District – these were for Thriller Live! which was fantastic. 

 £137.00 on 3/23/2013 would equate to theatre tickets costing US $208.68 (exchange rate of 1.5232 GBP/USD on that date). Keeping everything else constant, that same exact purchase would now cost $172.44 (using a 12/14/18 exchange rate of 1.2587 GBP/USD). The currency savings results in the equivalent of a 17% off coupon. Saving a few dollars on discounted tickets is great, but right now your entire stay is on sale.

This is not a level the Brits’ currency has often spent time at. It traded down here for a time period shortly after the initial Brexit referendum, made its way back up to 1.40, and has now sold off again. It wasn’t even this low when George Soros broke the Bank of England on Black Wednesday. The all-time low was 1.0520 on March 1, 1985. Do we get there? Nothing would be surprising. 

Watch these rates. Keep an eye on any potential unrest or strikes as Theresa May and Parliament hash out what path Brexit is exactly going to take. Will the Pound see outsized moves both up and down through this process? Of course, and maybe some of that can work to your advantage.  

Thank you for reading,

Ross

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