The investment firm founded by Peter Hargreaves who gave £3.2 million to the official Vote Leave campaign has predicted that the pound could collapse to the same value as the Euro in the event of No Deal.
Financial services firm Hargreaves Lansdown has launched a new investor’s guide to No Deal with an advertising blitz on Facebook promising “five investment ideas for any outcome”.
The guide predicts that the pound will drop in value “quickly and sharply” in the event of No Deal, adding that “we can’t ignore the possibility of it reaching parity with the Euro (£1=€1) for the first time.” According to an example used in the guide, this would add £18,182 to the cost of purchasing a €200,000 “dream property” in Europe.
Such a significant fall in the value of the pound would make imported food, fuel and medical supplies much more expensive.
Elsewhere in the guide, the firm warns that “Brexit has been a constant worry for many investors, and means billions of pounds have been pulled out of UK funds since the EU referendum in 2016”, “in a no-deal Brexit scenario things could get worse for domestically focused companies” and that “Brexit uncertainty is causing problems for companies, and investment decisions are being put off.”
While no longer a director of Hargreaves Lansdown, Peter Hargreaves maintains the largest stake in the business of 32 percent. At the time of the referendum he said that “if Brexit means the pound goes down, then whoopee-do. It will be positive for exporters and the market.”