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.
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.
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.