You might be wondering why, with the US stock markets at all-time highs, why your VEVE holding is still not showing a profit.
You can blame the dollar for that.
When we bought VEVE at the end of February $1 got you 80p and now it gets you 74p.
The dollar has depreciated by over 7% and that represents a headwind for VEVE, and your portfolio in general.
That’s because much of your portfolio is held in dollar assets which are converted back to £s each night.
Since the end of February those $s have been buying fewer £s.
If the exchange rate had stayed the same we might well have sold VEVE by now.
Why is this happening?
It would be easy to blame The Don and certainly some of the dollar weakness emanates from his policies.
But that can't explain the current strength of the pound vs the dollar.
Why is so much money preferring sterling to the dollar?
Comparing the US balance sheet to the UK balance sheet only a lunatic would favour the UK’s finances.
And that to me is a mystery. There appears to be no fundamentally sound logic to the current strength of sterling against the dollar.
And that lack of logic leads me to be hopeful that the exchange rate unwinds over the next few weeks, boosting returns across your portfolio.
And allowing us to close the VEVE trade.