Exactly my argument about “sovereignty” and why it isn’t something individuals should be concerning themselves with, certainly not taking a 20% ‘pay cut’ over.
The only real sovereignty for the individual in our society is measured in GBP and how much it is worth at home in the UK and across the world, especially with regard to USD which all commodities are priced in whether we like it or not.
I did too but then I inherited a load that are almost all badly affected by the recent uncertainty for UK-centric stocks. I also had 6 figure commitments made abroad BEFORE the referendum was announced. That has cost me a lot of money over the last 3.5 years and continues to do so.
Actually I edited the original ONS chart and replaced with the existing one which are the same source but over a longer period and more up-to-date too; showing the inflation first caused by the Brexit devaluation working through the system. CPI is still high given the economy is flat-lining at around 0% growth despite very low interest rates.
I think the correlation between Brexit and the weak pound is very, very obvious. Which was the point I was making previously. 3% may not be ‘too bad’, but for those getting 1% pay rises in the NHS or in interest on their savings etc then you do feel it, I assure you.
I’m sure you understand as an investor that a 5% dividend really only starts after you have allowed for inflation. 3% CPI means a 2% return in real terms and putting money in stocks is a big risk for just 2%. Big enough for 5%, lets face it. If I could get 10% return as my parents did on their savings in a building society I’d sell 90% of my stocks tomorrow. (the building society went bust!).
In fact the UK dodged a bullet in that this all happened around a time of massively depressed oil prices and other countries devaluing their currency by varying degrees also. Otherwise we could have seen inflation at something more like 6% or 7%, I believe, if oil and commodity prices had been closer to the average from the previous 10 years.
However, the real point is that it is all a cost of Brexit which was supposedly going to save us all money when clearly it has cost a tremendous amount so if it happens it is already in a massive deficit which it has to make up with all its benefits - none of which anyone seems to be able to name or describe, by the way. I’m not hopeful, personally.
I don’t mind playing ‘the game’ with the hand I’m dealt. I do draw the line at the rules being changed at half time though.
Hopefully you think these re valid points about Brexit and not some attempt at point scoring. As an investor I’ve been dismayed at how few people here have prepared to actually talk about how to get through the Brexit process with investments intact or bettered.
I’m afraid I don’t buy all that ‘jam tomorrow’ stuff about Brexit, I’ll invest in an AIM oiler if I want to hear that stuff.