There are plenty of people ready to bash Britain right now. There’s no doubting our political class have made a hash of Brexit. It has now become a fight to argue who has betrayed whom, in a desperate attempt at positioning ahead of an election that will likely result in historically high numbers of MPs getting the boot.
But there were plenty of people out there who are so angry about what Brexit “represents” (which is highly subjective) that they were always going to present leaving the EU as some sort of shameful, embarrassing situation.
I’m starting to wonder if we’re reaching peak gloom. Aren’t you?
I know one man here at our Southbank Investment Research HQ who certainly does. In fact, Nickolai Hubble reckons we could be approaching an historic opportunity to turn Brexit to your advantage. He’s been padding around the office with an increasingly intense look in his eye, trying to persuade people he’s on to something.
The short version of his idea is this: very soon, it’s going to be time to Buy Britain.
Not short it. Not cut your exposure. Not speculate on its collapse.
Buy it. Because there’s a big boom around the corner, for a group of “best of British” stocks Nick has identified. He’s putting them together into a “Brexit Boom Portfolio”. He’ll be publishing it tomorrow. More on the stocks in that portfolio in a second.
First – the cause of Nick’s optimism…
I’ll start with a trigger warning. Nick has an impressive habit of winding our readership up. Not all of it by any means. He has a readership of more than 10,000 investors who follow his work every month in his advisory, Zero Hour Alert. But there are plenty of people out there who, for whatever reason, seem to get “triggered” every time Nick says anything remotely controversial.
Perhaps that’s because he’s a real independent thinker. And a bit of a contrarian. I think his acid test of whether an idea is truly independent and contrarian is if it upsets some people.
Like the idea that Brexit could be the best thing that every happens to a small group of UK stocks. The very suggestion will get up some people’s noses.
But Nick’s logic is pretty sound, I think. It all comes down to the currency.
See, lots of big UK companies in the FTSE 100 aren’t really British businesses at all. They earn a lot of money outside the UK, but then “convert” that back into pounds for reporting purposes.
That means they benefit from a weaker pound thanks to exchange rate gains. In short, when the pound falls, the FTSE 100 tends to rise. We saw this in the post-referendum period.
It’s a slightly strange relationship. For most of us, a lower pound is bad news, because our money doesn’t stretch as far as it did internationally. But international companies listed in the UK (or the investors that own them) love it.
The inverse is true though. A rising pound hurts those businesses. And that’s where Nick’s thinking comes in.
He thinks we’re on the verge of a major uptrend in the pound. That’ll hurt the FTSE 100 – and hurt investors. But it’ll be good news for “Best of British” stocks who do a lot of business here in the UK.
These companies make up Nick’s Brexit Boom Portfolio.
Here’s how he explained his thinking in a recent note to subscribers:
I think almost all Brexit related outcomes will see the pound rise in coming years – the time horizon of an investor. That’s why I moved to the UK.
If Brexit is cancelled, thwarted or made meaningless, then the pound should surge. Staying in the EU, as far as economic policy and trade is concerned, would cut uncertainty. It would reverse the pound’s plunge. A relief rally in the currency.
If Brexit is a success, the pound should rise too as the economy improves.
A no-deal Brexit is likely to lead to a more successful economy because the British government could make laws and trade deals that benefit Britain instead of a long list of EU countries. Austria’s veto of the Mercosur trade deal over forest fires is a nice example of that. Can you imagine Gloucestershire vetoing a trade deal?
But not many people agree with me on Britain’s bright Brexit future. And so a further initial plunge in the pound may be the big buying opportunity for investors. After the initial reaction, the possibility of a Singapore in the North Sea will begin to look appealing to investors. And the pound will begin a long-term uptrend.
A crucial note on timing. As Nick pointed out, there may be one last leg down in the pound first. He sees that as a buying opportunity. A major one.
But what will he be buying?
Well, that’s what he’s disclosing to his paying subscribers tomorrow. Today you have a chance to get Nick’s stock recommendations as soon as they go live, for just £3.95 – thanks to this special offer.
And of course, you can let me know what you think of this to firstname.lastname@example.org. I expect vitriol, abuse and support. Though the exact ratios are hard to pin down.
I haven’t seen Nick this pumped up about an idea for a long while. Not since he convinced me a new Italian government was about to kick start a new European crisis… which turned out to be spot on.
Agree or not, it’s worth getting Nick’s thinking as soon as you can. Here’s the link you need to do that.
Publisher, Exponential Investor