Rand breaks through R13 to US dollar

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
 
Chris.Geerdts said:
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
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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.
 
Chris.Geerdts said:
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
Click to expand...

The country showing disapproval of the president is what's keeping the Rand fighting ;)
 
The rand certainly surprises us all the time. I dont think anyone expected this.
 
Chris.Geerdts said:
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
Click to expand...
Well lot of sell off on the JSE since the cabinet shuffle, so actually there was actually sell off from the ratings downgrade.
 
reactor_sa said:
Well lot of sell off on the JSE since the cabinet shuffle, so actually there was actually sell off from the ratings downgrade.
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Come again? My ETFs have been stagnant for years, if anything a crash in the rand always pushes the index up a few points.
 
Garson007 said:
Come again? My ETFs have been stagnant for years, if anything a crash in the rand always pushes the index up a few points.
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Depends on the exact index. Go look at ICB 8000 series or financials index since the cabinet shuffle and downgrades.
 
Garson007 said:
Ah, I just hold straight-forward top 40/100 types.
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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.
 
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