Pound Is 'Very Attractive' in Long Term, State Street's Farley Says

The video discusses the ongoing uncertainty in the Brexit process, highlighting the political divisions and challenges, particularly the Irish backstop. It examines market reactions, focusing on the pound's performance and investor sentiment. The analysis suggests that while the pound may face short-term pressure, it is undervalued in the long term. The video also explores the UK equity market, noting the differences between large and small caps and the impact of the weaker pound on multinationals.

What is identified as the critical hurdle in the Brexit process?

• The Northern Ireland protocol

• The European Union's budget

• The Scottish referendum

• The Irish backstop

What concern does David Blanchflower express about the pound?

• It is unaffected by Brexit

• It is stable and strong

• It is on a downward track

• It is overvalued

What strategy is suggested for investors regarding the pound in the near term?

• Avoid any investments

• Consider it undervalued for long-term investment

• Invest heavily in small caps

• Short the pound immediately

What is the current state of the UK equity market according to the analysis?

• Large caps benefit from a weaker pound

• Small caps are stable

• Large caps are underperforming

• Small caps are outperforming large caps

What is the suggested approach towards small cap equities in the current market?

• Invest immediately

• Wait for a better entry point

• Avoid them completely

• Focus on high yield bonds instead