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The tumultuous Rand


moerbei

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No doubt because we are trying to bring money. We hit the top of the spike every time! ?

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So lucky you are B!

What's your secret? LOLOL. Sorry to hear, I'm glad I got nothing left there

Harry I used Westpac migrant banking, dead easy and got a credit card on top to boot.

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This is brilliant

An economics professor at Texas Tech said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer. The professor then said ok, we will have an experiment in this class on socialism. All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.

After the first test the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. But, as the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too; so they studied little ...

The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F. The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed to their great surprise and the professor told them that socialism would ultimately fail because the harder to succeed the greater the reward but when a government takes all the reward away; no one will try or succeed.

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Whats happening now?

The aus dollar has been weakening against the rand!

Was 1 dollar to R10.08 (on XE) end of July.

And now it is 1 dollar to R9.88...

Whats up?

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Probably an indication that a whole lot of you gave up waiting for the Rand to improve and transferred money and so Murphy's law meant that the dollar had to weaken!

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As mentioned previously I'm still using Richard Cluver Investment Services in RSA to help with investment decisions. While you never follow advice blindly it provides another but different perspective on economic views which helps me.

The Rand has weakened since the end of August at 60%pa. That is way faster than the annual 17%pa. Why?

There is an outflow of investment capital from the Developing markets (RSA, Brazil etc) back into the Developed markets. It is this knock-on effect that also affects the balance of payment accounts of countries like RSA. What is the longer term economic outlook?

Sorry to be the bearer of bad news but it doesn't look good. Based on Fourier Analysis which measures market investor's sentiment, the DOW is heading for a cool down. Must say that was eminent since early 2014. The key rule is never to react on forecasts until it actually happens but at least it makes you aware of looming changes. What to do: consider to fix mortgage interest rates (yes there is a penalty if you revert back again - banks never loose :-) . Sell of equities using a sensible approach, get into bonds (a few trick when to hop in and out again) where applicable and into cash to safeguard past gains. This also counts for your managed portfolios in your Superfund.

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Bottom line is the Rand is going down and will keep going this way. It can never rise due to Asswipe politics and bad decision making. Africa is also beholden to China and will not ever be an economic powerhouse, no matter what the spin doctors say.

The ANC is hell bent on its 10 point Marxist plan and that means a welfare state. It is therefore not possible to become prosperous...bottom line get your money out while you can.

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  • 3 weeks later...

I have been watching the rate and my opinion is the Ozzie dollar relationship is more driven by US dollar than any goings on in SA.when the Ozzie dollar weakens against the US dollar the rand gets stronger against the Ozzie dollar. I spread the risk by transferring chunks at different times. Result got a 8,92 then 9,28 and then 9,56. Currently the Ozzie dollar is falling against US dollar so makes the rand stronger.

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Oz gone from 105 to 86 to USD. About a 18 percent fall in a short time, and expected to fall further. So Surferman using your measuring stick I would say that's also a significant change.

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Oh my gosh lets have a party the Randela is 9.66 to the Oz $ woohoo. Good if Oz $ falls to the US $. We are happy for a bit of a fall

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I don't understand you celebrate when the rands going down, pointing a finger saying yeah the currency going down the economy collapsed, people of South Africa we wish on you to suffer a fate worse the hell.

Now all of a sudden the Oz is also struggling against the US and its fine, you happy, a different measure, how come is that...

If that's not the kettle calling the pot black...

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Funtobeaussiechick,

You forgot not to feed the animals. LOL.

My dollar buys ten of your Rands. Snap.


I forgot to say, the Rand has dropped 4 Rand to the AUD since 2010.....

Let me help you chzaau. Currency 101...

Here is a 10 years Rand/AUD chart

http://www.xe.com/currencycharts/?from=AUD&to=ZAR&view=10Y#

And the USD/AUD

http://www.xe.com/currencycharts/?from=AUD&to=USD&view=10Y


Im not sure there was mention of celebrating, we all have loved ones there, it is more about bad policy and political decision that cause investor fear, silly unions toyi toying and demanding more and more.

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Dont let facts get in the way of your good news chzaau

In 1994 - the AUD was 70c to the USD

It is now 86c, Nearly a 20% improvement

In 1994 - the ZAR was R3.60 to the USD

It is now around the R11.00 mark.... no comment

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Hey Nev,

its called socialist progress. Those pesky capitalist, colonialist, chacharag pigs and their dirty little notes. :jester: Everybody earns a little less, and pays a little more. Wealth distribution at its best.

Edited by SurferMan
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Im just glad he doesnt give me financial advice...would probably have told me to invest in Zim businesses. :jester: :jester:

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But my 11 rand in South Africa buys me more food then your same 11 dollars in Oz. I can take my family out for a pretty good meal for 40 dollars. You'll be able to afford Macdonald for that price. For 20 dollars you get a kG of rump, I'll get that for about 11 dollars. If I want to enjoy a beer I get a six pack for 7 dollars, you get a six pack for 16 dollars upwards. So your dollar might be stronger but your cost of living living 3 to 4 times more.

When the goverment gets rid of the family tax benefit b, that's going to bite hard for many families. On top of the university cost going through the roof. The kids are going to start out life with 100 thousand dollar debt. How great is that, let's just give you a good start in life btw here an iou.

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You cannot compare costs without comparing earnings, otherwise it is a slightly skewed analysis.

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The costs in south africa are also dependent on the labor cost, something that is changing rapidly, your cheap cost of living has numbered days (Seen much price increases recently?), it also only affects the local produce, how are things looking for a flat screen TV or a PC, how about new equipment for the office?

Imported goods are looking a bit rough, you are paying the same in rands and earning substantially less, so wont have access to the good stuff you cun buy in a first world country from a cost of living value perspective.

The government recently removed some medical subjects to make it easier for doctors to get through, as it was "too hard" and the country needs more doctors, sure the uni fees will be cheaper, what will the value be of a degree in 15 years though?

Once again dont let facts get in the way of a good story right?

Please show me Uni fees from a uni for a middle of the range degree of 100k? not some newspaper saying look what COULD happen, an actual uni?

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R11 buys you more food in SA than $11 does in Aus? You have to tell me where you shop in SA, I'd like to buy me a Unicorn! :D

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Well, my $11 bought me the following yesterday : multigrain bread $2.30; tin baked beans $1.00; 3litre milk $3.00; lettuce $2.98; choc chip cookies $2.50......please share with us what your R11 got you.

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Chzaau I get grass fed beef for $6 a kilo in Perth. (Cold fact check - Stirling Shopping Centre butcher, I trade in fact as far as possible)

I worked in the beef industry in SA/Botswana/Isle of Man/UK implementing systems and most of the meat is class 3 or worse, what is known as "condemned beef" It is not allowed to be sold on any Euro/US/Aus market, but is rebranded and sold in SA as prime beef. It is from animals who die from disease that is regarded as non-tranmissable. To make this grade it has to be frozen to kill off the bugs, hence all beef to foreign countries may only be chilled.

Oh, at least we have family benefits. Tell me what your lovely Government would give you, oh yes, just over a 100 dollars a month as a pensioner. And that comes free with loan sharks, micro-loan scum, marauding pensioner beating thieves etc.

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