sitting on GPB, feeling nervous

[bristoldude]

After concentrating on income more than what to do with the proceeds for a while not I find myself with the majority of my net worth uninvested, sat (mostly inside ISAs that allow investment) in UK pounds.
The current political situation is making me very nervous about further devaluation of this, but I'd also been looking at the stock market and real estate as very expensive for some time.

I wonder what other UK residents are doing to protect against the events of the next year, and if there are any recommendations.

Currently I'm considering just getting into a world index, or trying to move a chunk of my money into euros, dollars etc while I figure this out..

[chenda]

What are your specific concerns ?

I don't think there are any particular risks holding GBP, other than more expensive holidays

[wolf]

I am in a similar position. Sitting on cash (EURO), because I have saved in the last 12-18 months, but have invested little of it. Lately I bought some bonds and commodities, but I haven't bought equities, because of the high valuations.
Somehow I am also aware of the possibility of the devaluation of the EURO. Like I said, similar position and thoughts.

Here is a thread I started. Maybe it could add a new perspective to your thinking.

Diversify assets in currencies, or not?

[ducknalddon]

What are your specific concerns ?

I don't think there are any particular risks holding GBP, other than more expensive holidays

If we get another devaluation post Brexit then we will get the accompanying inflation, but it could go the other way as well so who knows.

[bristoldude]

What are your specific concerns ?

I don't think there are any particular risks holding GBP, other than more expensive holidays

I guess I'm extra nervous because I spent a lot of time in Europe for work as well as holidays in the last couple of years.
Perhaps that will be a non issue anyway, and they just won't let us in

[chenda]

A low consumption lifestyle with a savings buffer is probably your best protection against any possible devaluation.

You could hold a few €1000 if you anticipate spending in the eurozone in the next few years, to minimise any worsening of the exchange rate. I might do this, as I go a few times a year. Although psychology I just calculate £1 = €1 now anyway. Anything better is a bonus.

[vexed87]

I'm operating Harry Browne's PP within my ISA. As a result I'm not sweating brexit or longer term inflation. Avoid buying foreign imports and you're set. I would be nervous of sitting on 100% cash because of inflation and possibility of bank bail-ins in the event of another monetary crisis. However I expect inflation to stabilise after the uncertainty of brexit negotiations has waned.

[bristoldude]

I'd been thinking about the PP previously, thanks for the reminder.
I'll get back into reading about that and see where it takes me.