A note to clients at Cornerstone Worldwide is reported to be advising them to sell sterling denominated assets as the United Kingdom creeps inexorably towards its first recession since the early 1990s. The Asian-based investment group’s note has reportedly suggested that cash be held in Swiss Francs, Canadian or Australian dollars or in precious metals.  Sterling has lost nearly 7% of its value against the single currency this year.

UK growth is expected to slow sharply and inflation is increasing at the fastest pace in a decade. Cornerstone Worldwide’s note is also believed to have cited the fact that UK consumers are the most indebted in the developed world as a compelling reason to abandon hopes of a swift recovery in the world’s 5th largest economy. Continuing unrest within the public sector workforce has begun to manifest itself with strikes becoming more frequent despite the government’s call for restraint in pay settlement negotiations.

Dire consumer spending figures showed that retail sales slumped 3.9% last month after rising 3.6% in May, the biggest increase since the data series began more than two decades ago. The spike was largely attributed to good weather in the month of May.

Cornerstone Worldwide would not comment on the contents of the note but their spokesperson agreed that the advice appeared sound.