Liz Truss: The New Kicker of the Pound’s Toe
Truss’s Rise to Power has sown more doubt than a centipede in a supply chain, and experts are calling the British pound the tail‑winged creature in trouble.
What Nigel Green of deVere Group is Saying
- Pound’s Performance: Already one of the most disliked currencies this year, it has slipped to its lowest level since 1985.
- Currency Drop: The pound fell to $1.1460—the weakest against the dollar since March 2020.
- Political Shake‑Up: The new PM’s arrival might cause a water‑bottle moment, but that would be short‑lived.
Why the Market Is Feeling the Bite
Truss’s promise of “unfunded tax cuts” and “massive spend” is equivalent to blowing a £170bn hole in Britain’s finances. The result? Inflation will rise and the Bank of England will tighten rates faster than a yogi on a hot morning.
Other Nemesis for the Pound
- Populist Agenda: The UK’s hardline stance on EU ties, the Northern Ireland Protocol, and the single‑market fuss is muddying the waters.
- Central Bank Interference: If Truss asks for a review of the Bank of England’s mandate, markets will panic like a cat in a room full of rocking chairs.
Advice for Investors: Those with heavy exposure to UK assets should buckle up and maybe even consider a pot‑of‑coffee break before reshuffling their portfolios.
In a nutshell, Truss is turning the pound into a “cuddling rat,” and the future looks a bit grim until it does otherwise.
