Perhaps the main effect of Brexit thus far has been a weakening of sterling. This is set to cause a rise in inflation as imports become increasingly expensive. Although the Bank of England remains dovish, a tighter monetary policy stance may become necessary as the price level rises at a faster pace and weaker sterling provides a boost to the economy.
In such a scenario, BT (LON:BT.A) could be a major beneficiary. Its large pension liability should be aided by the potential for higher interest rates over the medium term. This could allow for greater reinvestment and/or dividends in place of additional contributions to the pension fund.
Further, BT's share price has fallen by 15% since the referendum. It now offers good value for money in my view and its strategy could deliver growth, especially through cross-selling.
by Zak Mir | Trading| 1 mins. to read It would appear that as we finish 2016 there is a battle raging between Sound Energy (LON:SOU) and Hurricane Energy (LON:HUR) for the oil & gas minnow of the year.
by Filipe R Costa | Economics| 6 mins. to read For the second time in a decade, the Fed has hiked its key interest rate target. One year after the first hike, the central bank decided to give continuity to a new tightening trend that is still expected to evolve very slowly over time.
by Zak Mir | Trading | 1 mins. to read You might have thought that 2016 was going to be the year for cyber security group Falanx (LON:FLX). However, it may be the case that 2017 will be the year that the company comes up Trumps.
by David Jones | Trading | 2 mins. to read The last twenty years have seen significant growth in the use of technical analysis and charting. The growth of the internet and much more trading by normal retail investors has played a big part in this.
by Zak Mir | Trading | 1 mins. to read It may be the case that after the Horse Hill mania of the past few years, Alba Mineral Resources (LON:ALBA) is finally in sharp focus as a decent small cap prospect.
Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such descision.
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