Brexit - shares in UK company - Is now the time to sell

harry999

Hi

They say sterling will weaken to .90 to the euro - so would now be the time to sell UK shares before sterling weakens further ? Thanks

Busyness1

I think you have probably taken the brunt of the downside, FTSE up 3% today. Depending on the sectors you own, financials like barclays are down 40% since Friday but are up 4% today. The time to have sold would have been before the result to avoid the increase in volatility or to have hedged your exposure pending the result.

Francie Barrett

harry999 wrote: »

Hi

They say sterling will weaken to .90 to the euro - so would now be the time to sell UK shares before sterling weakens further ? Thanks

I don't think anyone can predict what Sterling will do next. I think if you don't like the company, then you should sell, if you like it, then keep it.

Sonnenblumen

Why sell in a falling market?

Cute Hoor

harry999 wrote: »

Hi

They say sterling will weaken to .90 to the euro - so would now be the time to sell UK shares before sterling weakens further ? Thanks

It's a difficult one to call. I'd be tempted to at least reduce your positions but obviously that depends on your own circumstances and your attitude to risk.

Financial shares like Barclays, Legal & General and many others are down up to 40% this year, some more, when you factor in the exchange rate drop of around 15% that is a fairly sharp drop on the year to date.

More defensive stocks like BATS and NG for example have survived the mayhem with BATS up 6/7% in the last week and around 30% ytd, NG something similar although a little less. Stocks like these are more likely to survive a tsunami like we've seen in the last week.

The markets hate uncertainty, and uncertainty is what we are going to have over the next couple of years with Brexit. JP Morgan, HSBC, Vodafone, Easyjet, Visa, Ryanair, Airbus and others all publicly considering their position, how many more who haven't made their intentions known. More significantly any international business considering new investment wouldn't touch Britain with a barge pole for the next couple of years, all with a much longer term impact.

After an initial bounce I can see share prices drifting back lower in the short to medium term. Just my thoughts and good luck with whatever you decide to do.


Edit: Now of course if you had decided to sell everything this day last week !!!!

Sonnenblumen

Call me cynical, but I think Brexit is largely overplayed. Plenty of scaremongering pre-event and less so post event, still, the MM's scared enough to force SP's to drop over 2-3 days across all sectors and despite the likelihood that British exporting firms will gain from any fall in £ etc.

Ramped up panic and flushing out scared investors, forces prices down = make money (buy cheaper). Now as the prices recover = sell to returning investors at higher margins (= more money).

Would be/existing Investors would be best to hold nerve, and if anything, DYOR and only buy on dips (obvious value opps). Plenty of double digit gains to be made with FTSE cos these past few days.

BrokenArrows

Sonnenblumen wrote: »

Call me cynical, but I think Brexit is largely overplayed. Plenty of scaremongering pre-event and less so post event, still, the MM's scared enough to force SP's to drop over 2-3 days across all sectors and despite the likelihood that British exporting firms will gain from any fall in £ etc.

Ramped up panic and flushing out scared investors, forces prices down = make money (buy cheaper). Now as the prices recover = sell to returning investors at higher margins (= more money).

Would be/existing Investors would be best to hold nerve, and if anything, DYOR and only buy on dips (obvious value opps). Plenty of double digit gains to be made with FTSE cos these past few days.

Agree. The market panicked as if Uk was being kicked out with immediate effect. Im sure there will be more dips to come but for the moment the market will recover and everything will return to normal until the deadline of actually exiting starts getting closer.

Ive entered Barclays, Legal & General and Whitbread. Have a few % on them so far. Today was nice.

newacc2015

A lot of the FTSE 100 arent that reliant on the UK economy. It is mainly the FTSE 250 that is being hammered, as smaller UK firms are more reliant on the UK for their revenue

Sonnenblumen

BrokenArrows wrote: »

Agree. The market panicked as if Uk was being kicked out with immediate effect. Im sure there will be more dips to come but for the moment the market will recover and everything will return to normal until the deadline of actually exiting starts getting closer.

Ive entered Barclays, Legal & General and Whitbread. Have a few % on them so far. Today was nice.

I used the dips to buy more, and the double-digit payback within the past 10 days is staggering. Some bluechips are all time highs I'm really tempted to take profit but it goes against my buy to hold style.

Great days for share investors