Cheaper UK equities coming

I am bullish on UK equities

Today, the UK’s FTSE 100 Index is trading at 6,189 while the

the British Pound (GBP) against the US Dollar is at 1.2260.

At this moment, I am anticipating lower prices in both.

However, I’m not interested in shorting anything but instead preparing to acquire some favoured UK stocks at cheaper prices.

So, I’m taking excess GBP, converting it to USD and waiting while the UK market becomes cheaper in GBP and USD terms.

Odds are increasing for a pullback to 5885 in the index which is 5% below current levels.

Failing that, I’d then look for a test of 5510.

30 June, 2020

by Rob Zdravevski

rob@karriasset.com.au

#GBP #FTSE100

This is not personal advice. Seek your own advice.