Warning for overvalued rand

[BusinessTech]

Warning for overvalued rand

The rand is likely to come under pressure after Eskom again implemented rolling blackouts on Friday (6 November).

 

[Binary_Bark]

 

[saturnz]

not overvalued

if the US FED continues to print fiat currency in the way it is doing, then logic dictates that the dollar is overvalued relative to any fiat currency thats not expanding as much

 

[rietrot]

not overvalued

if the US FED continues to print fiat currency in the way it is doing, then logic dictates that the dollar is overvalued relative to any fiat currency thats not expanding as much

But it's all about demand. Even with the FED pumping out dollars there's still a demand for them(I know that might be illegitimate/forced petro dollars, but demand non the less.)

Nobody wants Rands, and if nobody wants it we have a problem, the Rand likely to fall in value.


I think the Rand will probably stay were it is at now. Eskom, SAA whatever is all already priced in.

 

[saturnz]

But it's all about demand. Even with the FED pumping out dollars there's still a demand for them(I know that might be illegitimate/forced petro dollars, but demand non the less.)

Nobody wants Rands, and if nobody wants it we have a problem, the Rand likely to fall in value.

as you alluded to, the market can be wrong

my point stands

 

[ToxicBunny]

as you alluded to, the market can be wrong

my point stands

The market clearly disagrees with your logic though....

 

[saturnz]

The market clearly disagrees with your logic though....

that doesn't mean the market is correct

 

[ToxicBunny]

that doesn't mean the market is correct

Also doesn't mean that your logic is...

Balance of probability though does swing towards the market being right though, quite heavily actually.

 

[saturnz]

Also doesn't mean that your logic is...

Balance of probability though does swing towards the market being right though, quite heavily actually.

its not my logic that printing more fiat currency leads to a devaluation of the fiat currency, its basic first year economics

 

[krycor]

Just means a market re-correction is long overdue. Trump is doing his best to force a correction though.. look at all the trade wars he is starting just this week.

In SA me thinks Q4 will barely be positive.. meaning a year of contraction and at best narrowly avoiding recession. I think a lot hinges on SAA and if gov can stay out of the process which they don’t want to. I LoL’d that unions think there won’t be job losses..

 

[ToxicBunny]

its not my logic that printing more fiat currency leads to a devaluation of the fiat currency, its basic first year economics

Seems like first year economics may be wrong, if the states are still doing it and it is still working for them after how many years?

 

[saturnz]

Seems like first year economics may be wrong, if the states are still doing it and it is still working for them after how many years?

markets can wrong for longer than one can be liquid

 

[Jola]

I think a lot hinges on SAA and if gov can stay out of the process which they don’t want to. I LoL’d that unions think there won’t be job losses..

Yip, job losses will be the order of the day, after all, once you take out the looting and corruption, that is what is really wrong with SAA.