Brexit Portfolio: Preparing for the Vote

The transcript discusses investment strategies in light of Brexit, focusing on small caps in the US, Europe, and Japan. It covers currency hedging challenges, particularly with the pound and yen, and highlights Japan's market as undervalued. The conversation also touches on political turmoil's impact on market perception and the difficulty in pricing such risks.

Why is Japan considered the cheapest of the major markets?

• Because of its large population

• Due to its high inflation rates

• Because of its strong currency

• Owing to its low valuation

What is the strategy if Brexit occurs according to the transcript?

• Maintain a cash reserve and wait

• Increase investment in the UK

• Sell all European equities

• Invest all cash reserves immediately

What is a major challenge when hedging European equities?

• High transaction fees

• Currency risk management

• Political instability

• Lack of investment options

What is the expected trend for the Yen according to the transcript?

• It will fluctuate unpredictably

• It will continue to appreciate

• It will eventually weaken

• It will remain stable

What new factor is influencing financial market pricing?

• Political turmoil

• Technological advancements

• Global warming

• Natural disasters