Time to buy shares in British FX firms IG Group, CMC Markets and Hargreaves Lansdown – Op Ed

Let’s not concentrate on the value of the pound, that being its lower values as post-Brexit volatility prevails, however company stock is rocketing as astute investors see the value of British firms in an independent and thriving economy with top drawer leadership and technology. As a result, Britain’s ‘big three’ have a fine future and now’s the time to invest

London-Square-Mile

A good, solid dose of prudent speculation based on calculated understanding of previous events, market structure and geopolitical changes is often a path to a positive outcome.

In the case of Britain’s domestic corporate giants, FinanceFeeds maintained in the period prior to the referendum on European Union membership that should the electorate decide that Britain should become independent from the European Union, it would be freed from the shackles that have held it back and cost it a fortune for so long.

During its membership of the European Union, Britain was Europe’s powerhouse, a massive producer, a massive innovator and a nation whose corporations and startups are led by and staffed by professionals who take a great pride in their business and possess a work ethic and attention to detail that cannot be matched in the majority of the European mainland.

Now, with Britain’s highly innovative commercial world free from the burden of an indebted Europe with a moribund economy, legacy industry and widespread unemployment, the socialist nature of the European Commission favoring tax payer-funded bailouts over corporate prowess, the financial center that dominates the world is where the strength of an independent Britain is becoming evident.

Last week, the FTSE 100, which is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization and widely recognized as a gauge of prosoperity for businesses regulated by British corporate law, rallied to its highest point since December 2011 as a direct result of Prime Minister Theresa May having announced her actioning of Article 50 and provided an actual concrete notification that Britain will be proceeding with its exit from the European Union.

Chris Beauchamp, a senior market analyst at IG Group stated “Of all the post-Brexit outcomes discussed across the City over the past few months, ‘buying frenzy’ was not one that was viewed as very likely.”

It is indeed worth making the distinction between the FTSE 100 rally and the low values of the Pound.

Far too much emphasis is being placed on Pound values, and many generic comments are being made about the Brexit having negatively affected Pound values, however this is always the case when any geopolitical event takes place, positive or negative.

The real indicator of the positive nature of the Brexit is the massive interest in British corporate stock by investors as the stable independent future of British companies is being recognized.

It is astonishing that senior officials in central banks can make such grave errors of judgement.

Ben Broadbent, Deputy Governor of the Bank of England yesterday stated that there is “little doubt” that the economy has performed “somewhat more strongly” than predicted two months ago.

“We got it wrong” said the central bank.

You don’t say.

It is now very likely that the Bank of England, which is viewed by critics as a leading proponent of Project Fear during the referendum campaign (as is always the case with government-funded socialists) will be forced to file its gloomy forecasts in the garbage can when it publishes its inflation report next month.

There are also doubts over whether the central bank’s Monetary Policy Committee will cut interest rates in November. Simon Wells, chief European economist at HSBC, said: ‘The MPC is likely to be divided as to how to react to this news and a November rate cut could be a close call.’

Mr. Broadbent conceded the Bank had been too gloomy. ‘There’s little doubt the economy has performed better than the surveys suggested immediately after the referendum and somewhat more strongly than our forecasts as well,’ he said, and notorious Europhile Xavier Rolet, CEO of the London Stock Exchange has also changed his tune, now considering the post Brexit Britain to be a stronger home to a more solid domestic economy.

These are not only leaders of the central bank, but highly remunerated professionals who are supposed to have a great understanding of the world’s financial standing, therefore their pre-Brexit, pro-Europe stance was banal to say the least. It is more likely that, as central banks are owned by the state in every country except Switzerland, these people are more like politicians than bankers, therefore are likely to swing toward the left (completely at odds with the financial markets sector) in order to ensure their gold-plated check comes from the European Commission’s coffers rather than to operate as a meritocracy where they are rewarded for success and punished for failure.

Looking at the increase in share prices across British firms, it is now a good time to buy stock in British electronic trading firms, three particular ones being of note.

IG Group, CMC Markets and Hargreaves Lansdown are the pinnacle of Britain’s massive retail trading sector. The three firms have experienced a very similar trend in their share prices over the last week, in that it rose dramatically during the middle of the week, and settled yesterday, however the prices are now higher than they were before Ms. May announced the impending actioning of Article 50.

Britain’s retail sector has a very bright future, is highly advanced and has a loyal domestic audience who are used to the intrinsic nature of British firms’ provision of proprietary platforms for CFD trading and spread betting which makes up a vast proportion of Britain’s retail market.

With an astute audience that understand investment who now live in a thriving economy that is freed from the costs associated with EU membership and a country that has a pride in its massive output, more retail customers will have a wish to invest and trade the markets with British firms, themselves nestling among Tier 1 banks that power the world’s markets and financial technology that surpasses that of most other nations on earth and has begun attracting huge investments from overseas venture capital funds in what is now being termed “Brentry” referring to the attractiveness to investors of post-Brexit Britain.

Lastly, if you still need convincing – the two leaders who got this absolutely right were two of the founders of Britain’s most successful firms. Peter Cruddas, CEO and founder of CMC Markets has been an advocate of Britain leaving the EU for a long time, and has provided very detailed comment on it pre and post Brexit, as has Peter Hargreaves, co-founder of Hargreaves Lansdown. Both executives have even provided donations to campaigns to leave the European Union. This places them as industry leaders with far higher understanding of how this entire ecosystem works than that of the leaders of the central banks.

Ergo, now’s the time to put even more faith in Britain’s big three as their future is one in which they will go from strength to strength.

 

ig
IG Group share prices – Source Google Finance
cmc-markets
CMC Markets share prices – Source Google Finance

 

hl
Hargreaves Lansdown share prices – Source Google Finance

Read this next

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

Digital Assets

Thailand closer to launch digital asset exchange “to serve the needs of younger generations”

TDX is a subsidiary of the Stock Exchange of Thailand (SET) and its incorporation is part of the group’s strategic position to connect capital markets, open opportunities for the business sector in raising funds and cater to investment demand of new generations.

Digital Assets

Russia to legalize cryptocurrency payments as sanctions bite

Russia could soon be the latest country to lay down ground rules for legalizing cryptocurrencies as a means of payment, a sign that governments around the world are realizing that digital assets are here to stay.

Institutional FX

XTX Markets UK reports lackluster results for 2021

The UK business of XTX Markets, a non-bank FX liquidity provider and market maker, has reported its financials for the fiscal year ending December 31, 2021. The report showed impressive metrics after seeing revenues and customer activity increase even as the pandemic trading boom fizzled out.

Digital Assets

Binance in talks with BaFin to get license in Germany

Changpeng Zhao (CZ), founder and CEO of Binance has confirmed that they are in talks with Germany’s regulators to secure a local crypto license.

<