Rand breaks through R13 to US dollar

Chris.Geerdts

Expert Member
Joined
Nov 1, 2014
Messages
1,816
Amazing how the rand has been strengthening since May last year, with the recent political crises registering as a mere glitch on the longer term move.

I'm no economist but I think the global index managers still need to pull their money out of local bonds, due to junk ratings, and those selloffs will surely knock us
 

yebocan

Executive Member
Joined
Sep 22, 2005
Messages
9,299
Amazing how the rand has been strengthening since May last year, with the recent political crises registering as a mere glitch on the longer term move.

I'm no economist but I think the global index managers still need to pull their money out of local bonds, due to junk ratings, and those selloffs will surely knock us
Our currency was not downgraded...so still value in it for global managers...if our currency rating gets notched down..well, the ZAR will tank.
 

Pitbull

Verboten
Joined
Apr 8, 2006
Messages
61,827
Amazing how the rand has been strengthening since May last year, with the recent political crises registering as a mere glitch on the longer term move.

I'm no economist but I think the global index managers still need to pull their money out of local bonds, due to junk ratings, and those selloffs will surely knock us
The country showing disapproval of the president is what's keeping the Rand fighting ;)
 

Whatzmyname

Well-Known Member
Joined
Jun 2, 2012
Messages
388
The rand certainly surprises us all the time. I dont think anyone expected this.
 

reactor_sa

Executive Member
Joined
Feb 6, 2009
Messages
7,515
Amazing how the rand has been strengthening since May last year, with the recent political crises registering as a mere glitch on the longer term move.

I'm no economist but I think the global index managers still need to pull their money out of local bonds, due to junk ratings, and those selloffs will surely knock us
Well lot of sell off on the JSE since the cabinet shuffle, so actually there was actually sell off from the ratings downgrade.
 

Garson007

Honorary Master
Joined
Jan 26, 2007
Messages
11,614
Well lot of sell off on the JSE since the cabinet shuffle, so actually there was actually sell off from the ratings downgrade.
Come again? My ETFs have been stagnant for years, if anything a crash in the rand always pushes the index up a few points.
 

reactor_sa

Executive Member
Joined
Feb 6, 2009
Messages
7,515
Come again? My ETFs have been stagnant for years, if anything a crash in the rand always pushes the index up a few points.
Depends on the exact index. Go look at ICB 8000 series or financials index since the cabinet shuffle and downgrades.
 

Chris.Geerdts

Expert Member
Joined
Nov 1, 2014
Messages
1,816
Ah, I just hold straight-forward top 40/100 types.
I was thinking of global managers pulling their money out of (government) bonds as SA is downgraded

The Top 40 index is different and can go up if currency goes down, because all the shares which get offshore (dollar) revenue are boosted. Naspers is heaviest weighting, and gets most revenue from China. All the mining stocks get a boost as rand price of their products improves and Richemont (Swiss based luxury goods) also gets a boost. Shoprite has stores across Africa. That's my 'amateur investor' take on this.

It's fortunate for us as it prevents carnage on the JSE when the rand tanks - as you do see with the financial stocks like banks.
 

NarrowBandFtw

Honorary Master
Joined
Feb 1, 2008
Messages
15,982

Kosmik

Honorary Master
Joined
Sep 21, 2007
Messages
18,890
Top