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Rand depreciation - It's coming

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Super Contributor
Ok, the trade deficit is a huge concern at the moment and the talking heads seems to agee on one thing. Coming rand depreciation. I would love to hear how you would invest to take max benefit from this. Some friends I have, have invested in some funds in Oz. My question is - Would it suit us better to maybe invest heavily in companies that serves as a creat rand hedge like Sasol, Bats, Richmont etc in coming weeks or do you think taking funds offsore to Oz or any other non - European a better option. My concern is transactions costs of actually investing offsore.
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8 REPLIES 8
Not applicable
You could passively invest through Allan Grays Orbis funds. But you are then betting that the offshore companies are going to improve as well as the purely ZAR depreciation.They have not performed well as yet. Personally, I trade USD/ZAR currency futures, but that is of course leveraged. You could buy Mar or Jun contracts to give yourself more time and less roll-overs.
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Valued Contributor
just buy NEWUSD .. 100% pure rand hedge
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Frequent Contributor
I have some money abroad and it is not as simple process as one thinks - i have to declare taxes over there with all the implications and complications you can imagine. Transfer fees are not that big problem on a long term scale.
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Super Contributor
when we won the rights to host the World Cup the rand was projected at R20 to the dollar, never happened, just saying.
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Super Contributor
SAB;Steinhoff,BAT;Sasol;CSO;DATATEC;BIL;CFR DO IT!
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Super Contributor
Interesting option - Are there an expiry date linked to this ?
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Super Contributor
For something tracking the USD 100% it's price is pretty erratic.
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Valued Contributor
ya, ETN's always have XP date - but tis way out, like 30 years or something ..
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