The ZAR Exchange Rate Thread

zippy

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May 31, 2005
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I don't see how the US won't get a ratings downgrade either. Gonna be interesting to see which ratings agency assess the risk 1st.
A ratings downgrade only matters if someone else ends up with a better rating afterwards. In this env all markets are getting hammered
 

rietrot

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Which US/Euro companies down as much as 70%, like Sasol?
Markets as a whole. Funny how it balances out. On the JSE we have many individual companies that lost 90% over the last few years or months.
 

MirageF1

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Jun 29, 2018
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Markets as a whole. Funny how it balances out. On the JSE we have many individual companies that lost 90% over the last few years or months.
Kak. Not down 70% as a whole.

30%


S&P closed down -11.98% for its worst day since Oct 19, 1987 when the S&P lost -20.47%

  • This month: S&P is down -19.23% on pace for its worst month since Oct 1987 when the S&P lost -21.76
  • This year: S&P is down -26.14% YTD on pace for its worst year since 2008 when the S&P lost -38.49%
  • From Record: S&P is 29.69% below its intraday all-time high of 3,393.52 from Feb 19th
Dow closed down -12.93% for its worst day since Oct 19, 1987 when the Dow lost -22.61%

  • Dow turned in its biggest loss ever of 2,997.10
  • This month: Dow is down -20.55% on pace for its worst month since Oct 1987 when the Dow lost -23.22%
  • This year: Dow is down -29.26% YTD on pace for its worst year since 2008 when the Dow lost -33.84%
  • From Record: Dow is 31.72% below its intraday all-time high of 29,568.57 from Feb 12th
Nasdaq closed down -12.32% for its worst day ever (In Oct 19, 1987, the 2nd worst day ever, the Nasdaq lost -11.35%)

  • This month: Nasdaq is down -19.41% MTD for its worst month since Feb 2001 when the NAS lost -22.39%
  • This year: Nasdaq is down -23.05% YTD on pace for its worst year since 2008 when the NASDAQ lost -40.54%
  • From Record: Nasdaq is 29.8% from its intraday all-time high of 9,838.37 from Feb 19th
 
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rietrot

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Aug 26, 2016
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Kak. Not down 70% as a whole.

30%


S&P closed down -11.98% for its worst day since Oct 19, 1987 when the S&P lost -20.47%

  • This month: S&P is down -19.23% on pace for its worst month since Oct 1987 when the S&P lost -21.76
  • This year: S&P is down -26.14% YTD on pace for its worst year since 2008 when the S&P lost -38.49%
  • From Record: S&P is 29.69% below its intraday all-time high of 3,393.52 from Feb 19th
Dow closed down -12.93% for its worst day since Oct 19, 1987 when the Dow lost -22.61%

  • Dow turned in its biggest loss ever of 2,997.10
  • This month: Dow is down -20.55% on pace for its worst month since Oct 1987 when the Dow lost -23.22%
  • This year: Dow is down -29.26% YTD on pace for its worst year since 2008 when the Dow lost -33.84%
  • From Record: Dow is 31.72% below its intraday all-time high of 29,568.57 from Feb 12th
Nasdaq closed down -12.32% for its worst day ever (In Oct 19, 1987, the 2nd worst day ever, the Nasdaq lost -11.35%)

  • This month: Nasdaq is down -19.41% MTD for its worst month since Feb 2001 when the NAS lost -22.39%
  • This year: Nasdaq is down -23.05% YTD on pace for its worst year since 2008 when the NASDAQ lost -40.54%
  • From Record: Nasdaq is 29.8% from its intraday all-time high of 9,838.37 from Feb 19th
Yes i said 30%. Reading comprehension is a thing.
 

Speedster

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May 2, 2006
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A ratings downgrade only matters if someone else ends up with a better rating afterwards. In this env all markets are getting hammered
Sadly that's not how sovereign ratings, especially investment grade, works
 

krycor

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Sadly that's not how sovereign ratings, especially investment grade, works
It's got nothing to do with a rating vs x, y, z.. its about debt, income, spend & future commitments etc. US is asking for $850B bailout besides what FED has done.. It will be interesting to see if all countries kept USD bonds or who started selling off.

Keep in mind they haven't even gotten to a recessionary state.. this is just the start.
 

Speedster

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It's got nothing to do with a rating vs x, y, z.. its about debt, income, spend & future commitments etc. US is asking for $850B bailout besides what FED has done.. It will be interesting to see if all countries kept USD bonds or who started selling off.

Keep in mind they haven't even gotten to a recessionary state.. this is just the start.
The issue with ratings agencies is that many institutional investors are only allowed to invest in investment grade bonds so, irrespective of what happens in other countries, if we lose investment grade a large amount of foreign capital will be withdrawn from SA.
 

krycor

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Aug 4, 2005
Messages
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The issue with ratings agencies is that many institutional investors are only allowed to invest in investment grade bonds so, irrespective of what happens in other countries, if we lose investment grade a large amount of foreign capital will be withdrawn from SA.
Yup.. but was talking about the US. SA's fate will be known soon but i think its a definite downgrade as the viral impact just compounds things and high gini coeff countries don't do well with pandemics.. ironically why US will likely suffer a bit more than most 1st world (albeit lesser aged populous).
 
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