hi everyone... its almost certain that SA will be downgraded to junk status in the next year. any suggestions of how to re-align ones portfolio to benefit (or as a minimum limit losses) from the downgrade? does one invest in physical property, buy forex, what % of the portfolio should be allocated to foreign stocks, etc etc?
any company that is not dependent on the South African economy for growth. NPN, CFR, Steinhoff, BTI, NEPI, CCO, Intuprop to name a few. Then you have the SA companies with diversified business - Discovery, Old Mutual, MDC, NTC, MTA - although they are still 50% dependent on SA. Lastly, a resources nibble might be on the cards. Everything now depends on the USD. If it starts to pull back (like the international economists are forecasting), this should be good for resources. So might be worthwhile, but risky - because a couple of Lonmin style shocks are on the cards here.