Author Topic: Is the Euro still a Rand Hedge ?  (Read 5185 times)

Moonraker

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Is the Euro still a Rand Hedge ?
« on: January 07, 2015, 01:06:31 pm »
With deflation in Europe, exacerbated by the low oil prices, plus practically zero growth, the € is tanking and has lost heavily against the Rand on a yearly basis. So, be careful when selecting stocks that derive all their earnings from the Euro Zone ?
Your thoughts ?

The inflation rate in the euro area fell below zero for the first time in more
than five years, bolstering the case for more European Central Bank stimulus.

Prices dropped 0.2 percent in December, the European Union’s statistics office
in Luxembourg said today. That’s the lowest rate since September 2009.
Economists in a Bloomberg survey predicted a decline of 0.1 percent.
Unemployment held at 11.5 percent in November, Eurostat said in a separate report.
« Last Edit: January 07, 2015, 01:09:38 pm by Moonraker »

Orca

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Re: Is the Euro still a Rand Hedge ?
« Reply #1 on: January 07, 2015, 02:56:01 pm »
Thats good for me. :TU:
The £ is gaining strengh on the R and  €.
I started here with nothing and still have most of it left.

Moonraker

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Re: Is the Euro still a Rand Hedge ?
« Reply #2 on: January 07, 2015, 03:13:37 pm »
Thats good for me. :TU:
The £ is gaining strengh on the R and  €.
£ against €, yes you are right, but not really against R.
Do you have £ investments ?

(Another downgrade by S&P and co. plus ongoing power interruptions, can of course reverse the current R 'strength' drastically).
« Last Edit: January 07, 2015, 03:28:51 pm by Moonraker »