Good rand-hedge share?

[Rubberpigg]

What would be a good share to invest in if I think that in a year and half,the rand/dollar exchange rate will be R11 to the $?
Looking for a company/share that is exposed mostly to the US$ and not the Euro or British Pound.

 

[Dolby]

Funny - I heard the same thing a few days back :/

Apologies for not answering your question - but do you think this because of the World Cup?

 

[Rubberpigg]

I think that the US economy is slowly but surely coming right and giving itself a good clean.
That`s one reason.
And with South Africa,the slow degradation and lack of maintenance of infrastructure such as roads,rail,water,electricity is worrying.
Future price increases expected from Eskom is also worrying.
I am no economist and maybe my reasoning is a bit simplistic.
But I am basing it mostly on the recovery of the US economy and a slow weakening of the South African economy after the World Cup.

 

[Sly21C]

You could make lots of money via FOREX or currency trading. There is a thread called "My daily forex trades" whereby you get tips about the FOREX market. Where's your source of information regarding the rand to dollar exchange changing so dramatically? I would also like to cash in

 

[Redeemed]

You could make lots of money via FOREX or currency trading. There is a thread called "My daily forex trades" whereby you get tips about the FOREX market. Where's your source of information regarding the rand to dollar exchange changing so dramatically? I would also like to cash in

What are the major differences between Forex trading and stock exchange Share trading, are they equally lucrative? Barriers of entry?

 

[Sly21C]

What are the major differences between Forex trading and stock exchange Share trading, are they equally lucrative? Barriers of entry?

The difference is that with FOREX you trade currencies, while with stock exchange share trading you are trading company shares. But I think you should google those words and learn about them, that way you'll get more info. That's how I learned about them.

 

[Ou grote]

You can invest in an international UT, via Allan Gray, Sanlam, Old M etc...
I invested about 25k in one about 5 years ago for the same reason as you.
Still waiting....

Also some satrix tracker funds out there.

RH shares are shares like BATS, Richemont, Datatec, SAB, LIB-INT, Reinet, etc.
Pick any one.

 

[Otumeel]

You will always get the best financial advice in the general section of a computer forum.

 

[HavocXphere]

I wouldn't try to hedge it directly with a forex instrument, unless you are feeling really hardcore. Plus most forex instruments are afaik for 3 months, not 1,5 years. Remember also that you'd either need a huge structural shift to maintain R11/$ or you'd have to be made lucky when picking the date when the instrument matures. I think an offshore ETF might be better suited but you should research that yourself.

I reckon R11/$ is very unlikely...unless you know something I don't.

What are the major differences between Forex trading and stock exchange Share trading, are they equally lucrative? Barriers of entry?

Careful with forex trading. Its far easier to screw up big time there.

You could make lots of money via FOREX or currency trading. There is a thread called "My daily forex trades" whereby you get tips about the FOREX market.

Thats day trading. OP is talking 1,5 years.

 

[Rubberpigg]

I reckon R11/$ is very unlikely...unless you know something I don't.

Got it from reading something from Anglorand Securities.
They reckon that there is potential for another financial crisis, but centered this time on Europe.
They also reckon there is also potential for a hard-landing in China inevitably having negative impact on global commodity markets.The Chinese State Council in January identified electricity, coal, coke, ferroalloy, iron and steel,construction materials and textile industries as particularly vulnerable.
And because the bulk of our exports go to Europe and Asia,this will have an impact on our currency.
They believe a fair value for the currency would lie between 10 and 12 to the US Dollar.
But last night I read some articles by people saying that there is potential for more major problems in the US,such as more government bailouts of US companies,etc,and that the best way to protect your investments is to buy physical gold.
So,who knows .
I guess no one can predict the future.

You can invest in an international UT, via Allan Gray, Sanlam, Old M etc...
I invested about 25k in one about 5 years ago for the same reason as you.
Still waiting....

Also some satrix tracker funds out there.

RH shares are shares like BATS, Richemont, Datatec, SAB, LIB-INT, Reinet, etc.
Pick any one.

I had a look at Alan Gray`s Equity Fund.
The fund consists of SAB Miller (10.3%),BAT (10.3%),Sasol (9.1%), Remgro (7.2%), Anglogold Ashanti (6.5%),Sanlam (5.3%),Mondi Plc (4.6%),MTN Group Limited (4.4%),Sappi (2.8%),and Standard Bank Group Ltd (2.7%).
Most of them seem to be rand hedge shares.
Maybe,I`ll take a punt .

 

[Dolby]

Otumeel - you have no idea who actually reads these forums nor what skills they posses