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Sell euro shares [in Sanofi] ?

Financial discussion for any financial queries for Expats
KM01
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Joined: May 7th, 2017, 6:42 pm

Sell euro shares [in Sanofi] ?

#241451

Postby KM01 » August 3rd, 2019, 10:49 am

Hi all

Apologies if this is wrong board to post this question on.

My other half has approx. €35k of shares in Sanofi, bought when an employee and held onto since, for about 15 years.

With the strength of the Euro at the moment would this be a good time to cash in and invest the money in the UK?

We are 10 years or more from retirement so still very much in the accumulation phase, not the spending it phase of life!

Thanks in advance for any thoughts.

KM01

dspp
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Re: Sell euro shares [in Sanofi] ?

#241459

Postby dspp » August 3rd, 2019, 11:47 am

KM01,

This is as good a board for this question as any other board. I have slightly adjusted your title to reflect Sanofi.

Primarily it depends on your view on the likely Brexit pathway. If you think a hard Brexit and subsequent UK economic implosion is on the cards then the GBP will fall further, and so you should stay with Euro shares. If on the other hand you think that a land of sunlit uplands, milk, honey, etc will soon loft into view then you think the GBP will soon rise, and you should therefore switch from Euro into GBP now to benefit from the bounce. Personally I am in the first camp, but you need to make your own call on that, in an apolitical manner as this is an investment issue.

Separately though, if you have €35k in Sanofi then it might be wise to diversify that a bit unless you have a particular reason to think Sanofi will continue to outperform the Euro-market average. One way to diversify cheaply in the Eurozone is to use a low cost index tracker. Personally I use VERX for that, (Vanguard Europe excluding UK) which would help you stay with a Euro exposure but minimise any Sanofi-specific risk. Again you will probably have a better insight into Sanofi's situation than most people.

regards, dspp

richfool
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Re: Sell euro shares [in Sanofi] ?

#241498

Postby richfool » August 3rd, 2019, 3:44 pm

From the currency exchange (rate) point of view, it would depend on your view as to the future relationship between the Euro and the £ sterling. The £ is certainly very weak currently and could get weaker at least until Brexit is resolved. So there is an argument for capitalising on sterling's weakness and bringing some Euros back home type of thing.

There is also the aspect of being exposed solely to one stock (though I don't know from your OP whether you have other holdings). If not, then certainly from that perspective there would be merit in spreading your risk over a wider range of stocks, sectors and geographies. In that respect I would favour global growth & income investment trusts. Others might suggest ETF's. Certainly a global IT would spread your risk, and usually include the UK.

fca2019
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Re: Sell euro shares [in Sanofi] ?

#241639

Postby fca2019 » August 4th, 2019, 3:58 pm

I would sell up a proportion. If not in an isa or pension. In which case capital gains tax to consider.

Sell up to £12,000 profit. This will be below capital gains tax free amount.

Then I'd invest in global tracker or lifestrategy fund within an ISA.


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