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Doller fall against the rand

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Pauldelmas
Contributor
If the dollar falls against the rand what will be the best shares to look at. I believe PAM, BHP, MTN look good
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7 REPLIES 7
Super Contributor
Absolutely not! If that were to happen - you would have to look at companies reliant on imports.
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Super Contributor
I'm buying R/$ currency futures since there's less guessing. Not much, and slowly so if there's a 10% drop I can add to it. Also, I don't know what the heck I'm doing so very little reason to get too aggressive.
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Pauldelmas
Contributor
What would you say meet your best purchase options. I am doing well with PAM
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Not applicable
So let me see if I follow your logic, if the dollar weakens, you would advocate buying stocks that earn their income in dollars?
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Pauldelmas
Contributor
Yes what will be the best shares to buy if the dollar weakens against the rand. Remember someone who import will get it at a better price and can sell it at a better price -so they are not going to make money. Which shares will benefit and make money on the long run.
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Super Contributor
Best in this case is SASOL and ILOVO!
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Not applicable
OK, let me reiterate my confusion here - you are banking on the dollar weakening, and you are banking on companies earning their income in dollars (MTN, BHP, et al) making more money now - because what ... they are earning more dollars to counter the depreciation? STill not following your logic here
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