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What happens to shares

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IAM
Contributor
In the situation that is happening in Greece at the moment, what happens to shares. Obviously with the stock market closed there is no trading but when it opens, there presumably will be a drop, but you can still earn an income off your shares? And what happens to retirement savings invested in shares, once again I presume that those will take a drop but those will still have a value. Essentially, in this situation you are far better off having shares than having money in cash?
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Not applicable
Owning shares, you are probably still OK - assuming you have good quality shares. Owning a pension fund invested in shares - well, you are most likely screwed. History has shown time and again that pension funds are the first to get 'appropriated' by governments in need of cash - because they are nice easy targets (especially the poor saps working for the state). Investment wise, property tends to be the winner - as it is the only safe, tangible investment that can be made, in which you have absolute control - unless, of course, you have a Mugabe like government messing around with property rights. All I can say, is that if I was a Greek pensioner, I would be voting yes - and beating my grandkids on the head to make sure they vote yes too. If I was anyone else in Greece, well, I might be inclined to quote the old Monty Python skit - what have the Romans ever done for us?
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Super Contributor
if u beleive that this could trigger a recession or worse the collapse of capitalism then shares could become worthless-not sure I buy into that but it is possible to imagine a severe worldwide recession and a consequent significant devaluation of shares_-no one can really predict with accuracy the future and that makes this a very interesting scenario-I personally beleive the event will be absorbed by market and will probably end up as a non event-shares are certainly highly priced and some correction would be quite normal.
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Super Contributor
if u beleive that this could trigger a recession or worse the collapse of capitalism then shares could become worthless-not sure I buy into that but it is possible to imagine a severe worldwide recession and a consequent significant devaluation of shares_-no one can really predict with accuracy the future and that makes this a very interesting scenario-I personally beleive the event will be absorbed by market and will probably end up as a non event-shares are certainly highly priced and some correction would be quite normal.
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Super Contributor
Not to mention the possibility that Greece defaulting might mark the final (albeit it perhaps cyclical) nail in the coffin for emerging market currencies. Being in cash is one thing - being in the Rand quite another.
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Super Contributor
Not to mention the possibility that Greece defaulting might mark the final (albeit it perhaps cyclical) nail in the coffin for emerging market currencies. Being in cash is one thing - being in the Rand quite another.
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Super Contributor
this government is doing a pretty good job at devalueing rand without the Greeks help-what I find interesting is how many sa companies have already invested significantly overseas and therefore some of their cash and assets are already held in hard currency-think of Old Mutual,Investec,Netcare etc its a comforting source from an investors point of view but sad for SA
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Super Contributor
Sure but look at the spike in the Rand in 2001 for instance - if that were to happen again - I highly doubt there would be much of a retracement - especially if the chart can be trusted.
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Super Contributor
if you hold to the belief that there is an asset class which is unaffected by sentiment then you are going to have to find it on another planet. of course all asset classes are affected by sentiment. And the reality is that my big fat Greek divorce is going to linger on for months - with the Greeks having turned down an offer that was no longer on the table - unbelievable - and Yanis having fled the scene of the crime.( "Hellas poor Yanis I knew him well")
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Not applicable
what is with all the Rand bashing? In context, we are not doing so bad, IMO. All currencies are taking a beating - and performance wise, we are in the middle of the bell curve. Look at Brazil, if you want to see some real trouble. And that is a country with a $2trn GDP. And at least we are forecasted to grow this year - lots of countries out there that have negative growth forecasts.
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Super Contributor
in 1981 the pound could buy you 1,8 rands now in can buy you 19.its hard to have confidence in it.course if u compare to zim dollar then maybe
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Super Contributor
Hi everyone - been a while since I lasted posted on this forum. Skaaptjop, I do not share your views on the state of South Africa. The country, under the Anc government is regressing at a rapid rate. There are many significant areas that are in dire trouble, not least of which is Eskom and the general disrepair of the country's infrastructure. The wasteful spending ,corruption,ineptitude and lack of vision will significantly impact the prospects for growth and prosperity.The Rand is on a downward spiral and will continue to weaken.In truth there are very few positive factors one can identify. Add to this the state of the world economy and in my view tough times lie ahead.
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Super Contributor
?? -I am talking about the Rand taking strain... why are you going on about "all" asset classes??
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delta
Occasional Contributor
I don't think there is anything wrong a little rand depreciation, it just makes our exports more competitive. South African economy will probably shrink with a stronger rand.
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