We Have Cut Our Sterling Exposure, Says Connor Broadley’s CIO

The video discusses the impact of Brexit on the sterling and financial markets. It highlights the bearish sentiment in sterling due to Brexit uncertainties, with institutions like Investec and Aberdeen adjusting their positions. The emergence of the Brexit Party and potential leadership changes in the UK are influencing market strategies, with a focus on FX exposure. The video also examines the gilt market, noting its current overvaluation and potential political influences that could affect fiscal policy and bond yields.

What is the current sentiment in the Sterling market according to the transcript?

• Optimistic sentiment due to economic growth

• Neutral sentiment with no significant changes

• Bearish sentiment with potential no-deal Brexit

• Bullish sentiment with rising levels

Why do investors often overlook currency risk in their portfolios?

• Currency risk is always negligible

• Sterling tends to appreciate during heightened risk

• Sterling depreciation can lead to FX gains

• Currency risk is irrelevant to equity markets

What has changed in the political landscape since Easter that affects Brexit?

• A shift towards a softer Brexit

• Theresa May's decision to remain in power

• The re-emergence of the Brexit Party

• The emergence of a new political party

How might a shift in government influence the gilt market?

• By reducing fiscal spending

• By increasing fiscal spending and supply

• By maintaining current fiscal policies

• By decreasing gilt yields

What is the potential impact of a Labour government on Sterling?

• It would likely damage Sterling

• It would stabilize Sterling

• It would have no impact on Sterling

• It would strengthen Sterling