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What If?

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kokkie
Contributor
What could be the effect on RSA :Shares/Companies/Sectors when one or all of the following scenarioÂ’s materialized? 1. The Chinese Yuan replaces the US $ as the quoted price for oil. 2. The US $ depreciates to half its current value. 3. US interest rates increase by 5 percentage points. Which investments would suffer most and which could actually gain? And finally, what strategy should one employ to protect your portfolio?
3 REPLIES 3
Not applicable
not quite sure why you would see US$ depreciating to half its value, your fighting 2 governments (Euro with 1trillion and Japan with their couple hundred billion).
2)But to answer the question if $ depreciates its fantastic for SA
3)If interest rates get hiked in US $ will appreciate further
Not applicable
no-one can answer question 1...the Yuan is held to artificial levels for years, making a major change like that with manipulation in the market...the only thing that would be certain is that the unexpected would happen.
geordie1
Super Contributor
if the asetts u hold are genuine asetts and not liabilities after initial volatility due to fear and greed your investments would reflect value.