One of Scotland’s elite money managers has completely lost faith in the British pound.
The fundamentals are horrible, it’s just that markets haven’t focused on them yet properly.
Once they do, the pound’s rout will ugly and fast:
Turcan Connell, which caters to rich families, expects the pound to lose between 20 per cent and 30 per cent against the dollar once investors turn their sights on Britain as the government sells a record amount of debt. Sterling slid to a 10- month low versus the U.S. currency today.
“Alarm bells were ringing in Greece for a long time and when it happened, it happened very quickly,” Haig Bathgate, head of strategy at Turcan Connell, said at the company’s offices in the Scottish capital. “The U.K. is in a similar predicament. It could be hit very hard.”