Author Topic: TAKE ADVANTAGE OF THE WEAK RAND ? (Read 7210 times)

jonb · « **on:** January 08, 2016, 11:00:42 am »

Hi All

Mid last year I was late to the party but heeded the call and transferred around 50% of my SA investments to the EU where I am temporarily based for work.

Wasn't so hard but still enough red tape to do so!

I invested 30% in a balanced type fund over here in the Netherlands ( hasn't really gone anywhere in 8 months but hasn't lost anything either )

The rest I bought some of the standard US stocks

Facebook
Netflix
Boeing
Constellation
Visa
Starbucks
Nike
VOO ( as my ETF component )
Ishares Health

( To date this selection is down about 2% due to the bloodbath over the past few days )

today ZAR is at 17.4 to EURO

My question is it worth taking some funds back into SA as when i transferred out I got it at 15.2. This would give me a nice win I think

I do not want to live out here always and plan to settle back in SA, however My intention was to build a portfolio here so a little conflicted with this

Appreciate any views!

gcr · « **Reply #1 on:** January 08, 2016, 11:30:52 am »

Personally if I was you I would hold my funds offshore, but watch the exchange rate carefully and only transfer if the Rand strengthens significantly.
Zuma is going to make yet another calamitous statement yet again this year - as to when - I am not sure, but 4 events are on the calendar for this year which may affect the exchange rate significantly:-
1) Opening of parliament
2) Budget speech
3) Junk bond status yes/no?
4) Municipal elections

If there is disruption on the opening of parliament, and increased taxes or other punitive measures and the ANC loses significantly at the elections these will all affect the R/$ and all other major currencies
So watch what happens leading up to/through/after these events and then make a call
This is obviously just my opinion and assessment of the landscape going forward. If the R/$ inproves considerably then I will be taking funds offshore but I want the exchange rate to come back closer to R 12/$ before moving - which may be wishful thinking - but I am hoping the Rand will strengthen after the elections especially if Joburg, Tswane, Port Elizabeth and East London fall out of the ANC clutches

jonb · « **Reply #2 on:** January 08, 2016, 11:45:25 am »

Thanks GCR

Really appreciate some sound advice

What I don''t particularly get is my main reason for shifting money across would be the gain from sending out at 15.2 and bringing back at 17.4 . Your 4 points to watch are super valid and might cause more decline indeed and waiting for this might be great advice, however if R strengthens to 12/1 I would lose

Otherwise I am happy to leave over here just to ensure I have an offshore portfolio based in $$ and euro

Nivek · « **Reply #3 on:** January 08, 2016, 12:50:23 pm »

Quote from: gcr on January 08, 2016, 11:30:52 am

I will be taking funds offshore but I want the exchange rate to come back closer to R 12/$ before moving - which may be wishful thinking - but I am hoping the Rand will strengthen after the elections especially if Joburg, Tswane, Port Elizabeth and East London fall out of the ANC clutches

And on the other hand if it drops to R20/$? Any backup plan?

jonb · « **Reply #4 on:** January 08, 2016, 02:12:48 pm »

That''s the point...is 17 ZAR to 1 Euro a good time to pull some cash back to SA?

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Author Topic: TAKE ADVANTAGE OF THE WEAK RAND ? (Read 7210 times)

jonb

TAKE ADVANTAGE OF THE WEAK RAND ?

gcr

Re: TAKE ADVANTAGE OF THE WEAK RAND ?

jonb

Re: TAKE ADVANTAGE OF THE WEAK RAND ?

Nivek

Re: TAKE ADVANTAGE OF THE WEAK RAND ?

jonb

Re: TAKE ADVANTAGE OF THE WEAK RAND ?