How Brexit Could Make Pound's Stomach-Churning Ride Even Worse

The video discusses the volatility of the British pound in light of Brexit uncertainties. It explores potential scenarios, including a deal, an extension, or a hard Brexit, and their respective impacts on the pound's value. The speaker suggests that due to the wide range of possible outcomes, it's challenging to take an active position on the currency alone. Instead, they focus on shorting UK inflation and considering credit protection to hedge against the opposing outcomes of a deal or no deal.

What is the expected value of the pound if a Brexit deal is reached?

• 1.50

• 1.10

• 1.38

• 1.20

What is the potential value of the pound if a hard Brexit occurs?

• 1.36

• 1.50

• 1.38

• 1.20

Why is it challenging to actively trade the British pound?

• Due to high transaction fees

• Because it is not affected by Brexit

• Because of its wide range of potential outcomes

• Due to its stable value

What strategy is being considered in anticipation of a Brexit deal?

• Investing in European bonds

• Investing in UK stocks

• Shorting UK inflation

• Buying US dollars

What kind of protection is being considered in case a Brexit deal is not reached?

• Currency hedging

• Credit protection

• Gold purchase

• Real estate investment