Benefiting from an SA downgrade

HavocXphere said:
Don't think you read my post right bro.

I've got exactly R1.29 exposed to ZAR movements at the moment...pulled my ZAR investment in late 2014 right before the ZAR karked.
Click to expand...

I read your post, and I agree with you. I just mentioned my comments as I have been following Brazil's junk status for just over a year before it began. Hence the reason I sold off all my shares and also have nothing left in SA stocks. There is a huge misconception that moving your money to hedging stocks against the Rand will save you. It will not. All shares on the JSE will fall as investors are taking their money out of all shares on the exchange and not simply moving it around.

For those into investing for the long run and not worried about suffering losses now, just leave your funds. If the ANC get their act together, in a few decades, the JSE will pick up again and all losses will be wiped. Unfortunately, for South Africa, the recovering process will not be as fast as Brazil. Even Gordhan himself admitted it may take up to 10 years to recover from junk status, something I do not agree with and think it would take a lot longer.
 
Political issues aside checkout the GIVIND, I like the low volatility criteria. Personally I like the world wide flexible funds unit trusts, Im currently invested in Sygnia's World Wide Flexible fund, 55% offshore but they are flexible and they can put more offshore. Foord, Investec etc. also have similar flexible funds.
 
Invest in export markets.
The downgrade and resultant Rand drop will be good for exporters.
I'm putting my money in the local fruit export market.
 
SweetFennyAdams said:
Invest in export markets.
The downgrade and resultant Rand drop will be good for exporters.
I'm putting my money in the local fruit export market.
Click to expand...
Local fruit export to Europe are tightly controlled and easily banned for a year or two. The smaller farms don't do as thorough quality control on the fruit as the bigger farms do and if a couple of fruits with "swartvlek" is picked up in Europe they penalise everybody/the country and not just the specific exporter.

Fruit export is risky.
 
Hamster said:
Local fruit export to Europe are tightly controlled and easily banned for a year or two. The smaller farms don't do as thorough quality control on the fruit as the bigger farms do and if a couple of fruits with "swartvlek" is picked up in Europe they penalise everybody/the country and not just the specific exporter.

Fruit export is risky.
Click to expand...

There has been incredible advances in Citrus Black Spot handling, and Citrus is not the only export. Grapes and stone fruit also make up a big part of our exports.

I think an investment in the local fruit industry is a good idea. What stocks should one look at?
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X