The pound has lost an amazing 18% against the dollar since the Brexit vote on June 23, and there is no reason to believe it will recoup some of the lost ground in a significant manner any time soon. That's because four months after the referendum, the politics around the U.K.'s decision to leave the European Union are getting more, rather than less, complicated.
"So much depends on the way the government interacts with its European partners, with parliament and with the electorate," Dominic Grieve, a Conservative lawmaker who voted Remain in the referendum, said in a recent interview with Real Money.
"Part of the difficulty in this matter is that we haven't the slightest idea what people were really voting for on the 23rd of June, except for the fact that they regarded the EU as a thorough nuisance. They were irritated by the European Union, irritated with by the way it operates," he added.
Prime Minister Theresa May has frustrated some politicians in the U.K. by not disclosing much about her government's position on what it wants to obtain in negotiations with the EU. Her aides have said her policy is to play her cards close to her chest, but this increasingly comes across as indecision to foreign partners.
Consider the remarks made by French ambassador to the U.K. Sylvie Bermann to the British Bankers' Association (BBA) meeting in London last week
"You don't know where you want to go and you don't know where you are, either," Bermann said. "This is why our government has not taken a position. We are waiting for your government's proposals."
The difficulty of trying to dismantle more than four decades of EU membership is huge. Grieve said every day on ministers' desks "there are papers piling up pointing to the complexity of the process. Even the analysis of the future relationship with the EU is not there."
The head of the BBA, Anthony Browne, warned in his speech last week that bankers' hands "are poised quivering over the relocate button, with the first movements expected in the coming months".
In addition to these mounting pressures, Theresa May also must deal with renewed threats of pushing for independence from Scotland, where First Minister Nicola Sturgeon wants to ensure access to the single European market. While England and Wales voted to leave the EU, Scotland and Northern Ireland voted to remain.
"Scotland -- which voted overwhelmingly to remain in Europe -- must be able to secure a continuing close relationship with Europe, including membership of the single market. The Scottish government will bring forward detailed proposals on how that might be achieved, and we will submit those as part of the UK-wide process to prepare for the triggering of Article 50," Sturgeon wrote in the Financial Times.
Sturgeon added that independence would be considered if it becomes clear it is "the best or the only way of protecting our interests."
While all this makes it clear that the pound cannot go any higher from here, shorting it outright is not an option for the prudent investor. The best ways to profit from the pound's weakness would be to look for stocks in areas that are likely to benefit from the weak currency.
U.K. travel and tourism is such an area, with London experiencing a boom in tourism from abroad due to the weak currency.
Intercontinental Hotels Group (IHG) is the owner and operator of such hotel brands as InterContinental, Crowne Plaza, Holiday Inn and Hotel Indigo. The influx of tourists rich in foreign currency to London and other big U.K. cities would benefit this company.
French hotelier Accor (ACRFF) is another way to get exposure. The company owns hotels in busy areas of London such as Novotel in the Waterloo area or Sofitel near St. James.
Investors looking only at U.S. stocks could start their research with Hilton (HLT) . The group has many hotels in central London, including the iconic Waldorf situated right next to the theater district.