The head of deVere predicts that the UK is slowly heading towards a soft Brexit as talks between prime minister Theresa May and Jeremy Corbyn appear to be at a stalemate.
"The one thing that does seem a relative certainty is that there will be some form of soft Brexit. The longer the Brexit process takes, and it is clearly taking a long time, the closer the final relationship between the UK and the EU will be," Nigel Green, the founder and chief executive of deVere Group said in a statement.
"Against the backdrop of a likely soft Brexit, the pound currently looks undervalued," he added.
The longer the Brexit process takes, and it is clearly taking a long time, the closer the final relationship between the UK and the EU will be"
Green's position comes as weeks of talks between the two main political parties in Westminster resumed, following the Easter break. "The talks between the government and the official opposition seem to be on the verge of collapse.
"Nothing has of any substance been achieved and everything remains up in the air."
In a sign that the discussions have hit an impasse, the prime minister told her Cabinet that the timetable for the UK's departure from the EU had become a key sticking point between the two sides. May is also understood to be concerned Labour will wreck crucial Brexit legislation in the Commons to block her EU withdrawal deal for a fourth time.
Labour has accused Theresa May of failing to offer any substantive changes to her Brexit deal in cross-party talks.
As the UK seems to be no closer to leave the EU as it was on the 29 of March, Nigel Green tells advisers to look at the way the pound will react on Brexit day.
"When Brexit is finally delivered, investors are advised to be on the watch for a rally in the pound, UK stocks and a spurt in economic activity as sidelined household and business spending kicks in."
"Since the Brexit referendum took place, the pound is down 14% against the euro and 13% against the US dollar compared to the day of the vote in June 2016.
"In the new environment, should a soft Brexit be delivered, there is a possibility that the pound could rise to pre-referendum levels against the pound," he added.
Green concludes: "Brexit, amongst other geopolitical and economic factors, drive investors returns. It's therefore crucial that investors mitigate risks and capitalise on the inevitable opportunities of shifting environments by ensuring that their portfolios properly diversified."
