The pound is crashing !!!

[adrianna22]

They are now saying....

£1 = £1.23-- gone down by 5.76%

£1= $1,38-- gone down by 7.55%

Both the pound and the FTSE were artficially inflated in the run up to this. They have both now SETTLED to last weeks levels. Within 24 hours. I'm fairly sure that sky is still up there chicken licken!

The mistake people are making with the comments about the FTSE and the pound being roughly where they were last week are that 1. The FTSE100 is not really representative of true UK based companies. Most of the FTSE 100 constituents are global companies with earnings in Dollars as well as Sterling. That's the main reason Astra Zeneca and BAT industries rose so much today as well as being defensive stocks. The pins devaluing actually increases their earnings flow so offsets the natural fall in share prices.

The FTSE250 was down 7% today and this has many uk based companies in it. House builders were hammered. Madrid was down 12% Paris 8% and Germany almost 7%. The FTSE 250 is down heavily in the last week. Some funds which make up people's pensions and investments were down more than 10% today! That's a hefty hit if you are about to retire.

1. Sterling has been depreciating for over 12 months. The pound was trading at 1.39 euro a year ago but has been drifting downwards in the last 12 months. Many experts in the financial world are predicting parity within the next few months. It might not go that low but it is possible.

Long term nobody, even the experts know what is going to happen as its unknown territory.

Pound devaluing