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The pound has fallen by more than 8% since May, and the decline has intensified since British Prime Minister Johnson announced that Britain would withdraw from the EU on October 31 regardless of a transitional trade agreement.
A withdrawal without an agreement would be a huge blow to the British economy.
Bank of England President Carney warned again this week that the prospect of a no-agreement European withdrawal has led to a far lagging performance in the UK stock and real estate markets and burdened British companies wishing to borrow in overseas markets with a "British withdrawal premium".
Investors generally avoid making big bets on Britain's economic recovery, and few have the courage to predict when the political turmoil will end. Early elections, another delayed withdrawal from Europe and more uncertainty are likely to take place during the rest of the year.
But after the pound's latest plunge, some long-term managers are reviewing and drawing conclusions -- at least on paper -- that some British assets are too cheap to ignore.
Equally tempting is the prospect of a rebound in sterling if Britain avoids a non-agreed exit from Europe. A Reuters survey showed that the pound could rebound to 1.36 against the dollar in this case.
"We're talking internally because British assets are starting to look fairly cheap compared to other regions," said Tim Drayson, head of economics at Legal and General Investment Management.
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