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Online Share Trading

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Mboweni considers 200bps hike

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asylum
Super Contributor
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15 REPLIES 15
Not applicable
lol,why yummy?thats not good
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asylum
Super Contributor
i dont have to worry about which share will offer value all i need is to put the old Rand into money markets as cash is going to outperform lots of shares.omo
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Maggie
Super Contributor
I agree. Rather take 12% on money market in the short term than sit with stagnant or declining shares
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scandal
Super Contributor
and inflation will eat away at the 12% faster than you can accumulate it . Rather trade but take low risk trades OMO
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Wizard
Super Contributor
100 at most, then another 100 and like that. Like in the good old days! That should cool off a bit the prices of the houses as well
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platsak
Super Contributor
He's going to raise interest rates back to create 1998 all over again.
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divz
Super Contributor
The pain has been too gradual i reckon one more hike of 200 pts and get it over.
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PaulC
Super Contributor
I would rather stick my R in stx40 than a Money markey. Bank rates are traditionally below REAL inflation rates. With all the money printing around the world at the moment bank accounts would be the last place I put my cash. My 2c - P
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divz
Super Contributor
With that kind of hike SA will be a good bet for the carry trade and therefore strengthening rand. May be good time to trade some currency
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Brazen
Super Contributor
No way he'll do 200. Maybe 100, guaranteed 50.
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Not applicable
Are the markets now builiding in the 200 bp? If so, we'll see some false euphoria in June if this does not happen.
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Brazen
Super Contributor
200!!!???? It's just dawning on me. I'll have to shop at g*damned PIK.
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louisg
Super Contributor
Assume you put your cash in the bank and get 12% interest for a year, and you pay 40% marginal tax. Taxman will take 4.8% and inflation will take say 11%. You are left with a -3.8% real return. Yes, that is a minus. PS The first R19000 for under 65 year olds and R27500 for over 65 year olds is tax free in the 2008/9 tax year.
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asylum
Super Contributor
inflation will take 11% that is assuming that you dont get an increase on your salary for the whole year? so if you get a 12% increase and 12% on your bucks in the bank surely you come out on top.
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Gof
Contributor
There's no way he'd hike the rate by 200 - he said that so a 100 hike won't seem that bad!
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