Following up previous blog entries in which I had forecast Sterling recovering; the present price action and economic news -- and, importantly, SENTIMENT in the UK -- I am concerned that GBP/EUR will plunge through parity. I am not convinced that Europe is any stronger when you take into account the mix of the whole of Euroland but Sterling seems on a one way ride right now.
Aside from the implications for British trade and industry, this could destabilise an already unstable banking sector. At this stage in this crisis we need to focus on unstable sectors rather than individual assets and the banking sector is both the most vulnerable and the most vital.
I hope that all readers of davidscompass still have at least one month, preferably more, of cash in the sock drawer; enough to pay all bills? The income you are getting from your deposit and savings account is now near-zero so there is no incentive to leave it where it is vulnerable.
Take those nuts and satsumas out of those Christmas stockings and fill them with good old-fashioned folding money -- or gold coins, or both.
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