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Top Picks 2020: CurrencyShares British Pound Sterling Trust (FXB)

01/24/2020 5:00 am EST

Focus: ETFS

Omar Ayales

Editor, Gold Charts R Us

Our Top Pick for conservative investors is an exchange-traded fund that benefits from a rise in the British Pound — CurrencyShares British Pound Sterling Trust (FXB), notes Omar Ayales, chief trading strategist for Gold Charts R Us.

For the past 3 years, Brexit woes have put downside pressure on the pound. Uncertainty regarding the U.K.’s decision to leave the union and what may come from it were keeping investors at bay, waiting for ‘smoke signals’ of any sort before making financial commitments.

The recent landslide win by the Conservative party in the U.K. not only guarantees a swift Brexit, but it also allows the U.K. to take advantage of momentum and restructure its country to allow for stronger unshackled growth, trying to emulate the economic growth success story the U.S. has shown since the conservatives took over the political landscape in Jan 2017.

Consider that the U.K. is not only in a position to redefine its political spectrum, but it’s also a country with sound fiscal discipline, manageable debt load and lower budget deficits which could get slashed without union expenses.

The British Pound is positioned to be the strongest currency in 2020. I’m selling some U.S. dollar for some pounds. For conservative investors seeking to benefit from the strength of the British Pound, my Top Pick recommendation is the CurrencyShares British Pound Sterling Trust.

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