Dear Reader,
Tomorrow is the referendum for Scottish independence. If it is a Yes vote GBP/USD could go as low as 1.50 or below in a matter of months. If it is a No vote the pound should strengthen to 1.70 in a similar time span.
A yes vote could cause UK government bonds to sell off again with a target of 2.80 yield on the 10 year. A No vote should drive the yield below 2.45 in one or two months.
A Yes vote could cause a fall in the prices of British stocks. A No vote should evoke a rally.
Actually, a good short-term way to play the referendum is with options(calls and/or puts) on large cap British stocks. Regardless of the outcome of the Referendum, volatility should pick up globally and especially for the FTSE 100!
Disclaimer: This article is provided solely for informational purposes, and does not constitute an offer or solicitation to buy or sell any securities. The opinions expressed in the blogpost are the author's and they in no way express the opinion or official position of Bulgarian National Bank!
Conflicts of interest: I may possess some of the securities or currencies mentioned in the blogpost!
Stocks valuations, analysis. Unbiased. Insightful. Property of Wolfteam Ltd., www.wolfteamedge.com If you find the blog useful, LINK TO www.posledovich.blogspot.com Stocks, Bitcoin, Cryptocurrencies, AI, analysis, insights. CLICK ADVERTISEMENTS, SHARE ON SOCIAL NETWORKS! Technology, Bitcoin, AI, company strategy, stocks analysis. Stocks, crypto involve high RISK! Nothing on this blog is meant or should be construed as investment recommendation to buy or sell securities or their derivatives!
No comments:
Post a Comment