Industrials down 3%
Industrials took the brunt of weaker markets last week as concerns regarding the economic outlook post US elections weighed on sentiment. Woolies was down 6,3% and several other industrial shares fell by approximately 4%.
Naspers down 7,9%
Rand strength and weakness in social media stocks put pressure on Naspers. Facebook was down 8,6% while Groupon fell 19%. Some anal... ››› more
Admittedly, I expected more movement in the Rand once the cabinet reshuffle was announced. We have a saying that “the Market always knows” which seems to apply in this case.
When Mr. Nene was removed, the Rand fell 8,5% within the first few days and then extended those losses by another 10% a few weeks later. By comparison the Rand has loss only 7% so far, perhaps the Market knew that SA I... ››› more
A week of heightened protests has ended and the ANC Cadre are holding the fort, for now. Their confidence masks the growing dissension from all sides, including members of its own party, eventually pressure will come to bear.
Fitch followed S&P in downgrading SA, but again the reaction was relatively muted. Clearly the market had been preparing for this eventuality. Of more concern is that som... ››› more
When the results of the Brexit referendum came on Friday 24 June 2016, the rand fell more than 8% against the dollar. This was the biggest fall against the American currency since 2008.
The international impact of Britain's decision to leave the European Union is making it difficult for investors to figure out what to invest in next. If you're feeling confused, there is one market that still o... ››› more
This week, the South African Rand is at its highest level in seven weeks. It's clawing back against the dollar trading at around R14.74.
I don't know about you but I certainly didn't expect the rand to gain so much ground. I must admit that I had severely negative outlook for the rand this month.
With the political unrest in Tshwane and a new wave of violent strikes in the country, I expect... ››› more
The Bidvest group recently unbundled its Food Service business and listed it separately on the JSE as Bid Corporation (Bidcorp) - share code (JSE: BID). Bidcorp received a warm welcome on its debut, kicking off the day at R270 a share and closing well up at R304 (giving it a massive market capitalisation of R102bn).
But let's recap quickly…
The reason for this unbundling was to create a ... ››› more
With the rand doing tumbles in the markets right now, you need a way to expose your money to international markets.
You see, by earning money in pounds or dollars, you're protecting yourself from the weaker rand here at home. In fact, you're increasing your investment returns. ETFs are a great way to get exposure offshore with limited risk and capital outlay. Today we've found you the ideal of... ››› more
Yesterday I warned investors that the rand will lose strength against the dollar because of the rumours that the Hawks want to arrest Pravin Gordhan for his involvement in the establishment of the SARS rogue unit while he was the tax agency's commissioner. As I expected, that's exactly what happened. But now, where to from here? Is it time for South African investors to be really worried? And wha... ››› more
This year so far, the rand is down over 10% against the dollar. It's a similar story with the currency's performance against the euro and the pound.
It looks like the rand is far from out of the woods yet.
So if you haven't hedged yourself against the rand's fall, what can you do now?
Read on to find out…
Rand hedge #1: Hold foreign currency
You can hedge yourself against the r... ››› more
Looking over SA's 2013 investment year, anyone would have raised an eyebrow. The sheer volume of strikes in 2013 put the country on the back foot and made it difficult for people to make profits. Thanks to the labour unrest, the country's current account deﬁcit expanded. This also weakened the rand and shattered the proﬁtability of mining companies already battling lower commodity prices. But ... ››› more
Fed Chairman, Ben Bernanke's countdown, to make a move that will cause the rand to plummet further than you'd ever expect, has already begun.
And you need to make sure your wealth is protected today.
Let me explain…
With growth in the US, the money flow to South Africa will dry up!
Since the financial crash in 2008/9 the US Fed has been pumping billions of dollars of stimulus into its... ››› more
When the rand declines, does it really affect you?
It's easy to think it has nothing to do with you, but in reality it has everything to do with your wallet.
For every 1 percentage-point drop in the rand, the cost of petrol goes up by as much as 10c per litre. So if the rand goes to R10/$ you could be paying as much as R1.16 more per litre of fuel, every time you fill... ››› more
Many of us take the ostrich approach to inflation. We know it's coming, but we feel that if pretend it's not there, maybe we won't feel the extra pinch on our pockets. Sadly this approach doesn't work. And now a Reuters' poll shows there are signs that we should be getting set to face even more inflation this year - and it'll hit us fast! Here's how to protect your pocket from inflation with three... ››› more
Thanks to inflation, the price of everything is going up - food, electricity, petrol. Unfortunately, our salaries aren't adjusted accordingly. That's why it's so easy to fall into the ‘debt trap'. The Reserve Bank reports that the household debt to income ratio was already at 76% in the third quarter of 2012. But there's an easy way to avoid becoming a debt statistic and bank a handsome profit a... ››› more
“Every time the rand loses value, you pay more. More for petrol, more for food, more for electricity. More for everything! I don't know about you, but everyday it feels like prices are increasing and eroding my wealth,” says investment strategist Gavin Fourie. But, there's a simple way to reverse the effects of rand weakness on your wealth. Read on to find out how you can protect your wealth f... ››› more
Worried about the rand? You're not alone. With reports that the rand is “languishing at four-year lows,” many investors are concerned about the state of our economy. But this shouldn't put you off of investing. In fact, few investors seem to realise you can actually profit from a weak rand…
Just when you thought the rand was at its lowest, emerging market economist Peter Attard Montalto o... ››› more
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