SKAAP - I (and many others like me, Ill wager) find myself on the horns of a dilemma - the USD is overbought and emerging currencies oversold - but I do not trust our government enough to buy Rands - so I would rather forgo the potential profit of a long Rand trade in favour of any other setup available. The risk of something going wrong locally is just too high. Notwithstanding all of the price action over the past 25 years - the Rand has lost 85% of its value! This is not an asset I wish to accumulate. If the Rand were to strengthen appreciably - our market would probably crash. Our commodity producers would break down. Employment would take a new leg to the downside. Banks (after an initial celebratory bump) would swoon on the write-downs. Our industrials would crash due to imported competition. All the while - I am still exposed to the ZAR as I am trapped in substantial holdings in SA small caps, some positional trades in SA platinum miners and AGL - and a fair portfolio of speculative real estate that is oh so slow to move! Needless to say - I lie awake at night!