Garfield2010 Posted September 22, 2011 Share Best or safest? Safest, buy gold. Best...... buy blue chip shares........ I would not invest in property or mines at the moment due to this nationalization talks. The gov wants to "cap" farm prices meaning they want to basically take away the willing seller/buyer principle. Can you imagine what this will do to the prices and our economy? Also next week Greece is officially bankrupt. Groot *** oppad. Link to comment Share on other sites More sharing options...
ROCKITRIDEIT Posted September 22, 2011 Share This is the first intelligent conversation that i have seen on the hub in a while. Good work guys. So where is the best place to put my money right now? I can PM you if you want, hell we can even meet! I'm an offshore IFA based at the Waterfront Link to comment Share on other sites More sharing options...
Vinnydabutcher Posted September 22, 2011 Share See what happens when Greece defaults on their repayment! Damm the Greeks!! Euro takes the strain and we go down with it! Support local industry I guess! Is this going to effect CWC/CRC pricing? Keep a close eye! Link to comment Share on other sites More sharing options...
ROCKITRIDEIT Posted September 22, 2011 Share THe demand for rands is low and thats why it depreciates. Your government is destroying our economy. In2 years time the rand will be 20:1 against the dollar. The petrol price will also soar in the next 2 weeks as oil is more expensive to import now. And dont forget the new proposed wealth tax. Ah Garfield, not so fast, you haven't taken into account the fact the price of oil itself has dropped recently on the back of weak global economic growth. And as for your prediction of ZAR/USD 20:1 in 2 years time, if you offered that in the futures market you wouldnt be in business long I'm afraid Link to comment Share on other sites More sharing options...
Garfield2010 Posted September 22, 2011 Share FOr all practical purposes it will affect all imports so yes unfortunately. The existing stock however should still be at the same price. Link to comment Share on other sites More sharing options...
krl747 Posted September 22, 2011 Share Best or safest? Safest, buy gold. Best...... buy blue chip shares........ I would not invest in property or mines at the moment due to this nationalization talks. The gov wants to "cap" farm prices meaning they want to basically take away the willing seller/buyer principle. Can you imagine what this will do to the prices and our economy? Also next week Greece is officially bankrupt. Groot *** oppad. I would going an entirely different route. I will buy either Sealy, Simmons or Edblo. If I had the money I would go for tempur. Talking about the mattresses, and put my money under that. Link to comment Share on other sites More sharing options...
TNT1 Posted September 22, 2011 Share I would going an entirely different route. I will buy either Sealy, Simmons or Edblo. If I had the money I would go for tempur. Talking about the mattresses, and put my money under that. +1000 This whole stupid global economy hasn't hit rock bottom yet, and when it does, the arseholes who ****** it all up will just start digging. Cash in your hand will be the only safe money. Link to comment Share on other sites More sharing options...
GrumpyOldGuy Posted September 22, 2011 Share +1 1000 ZAR is an emerging mkt "soft" currency, it has been supported in recent years by speculatory hot money chasing yield/return, but as soon mkts/investors get jittery, that money flows out of soft currencies like the Rand as quickly as it went in. This is also why you have seen the price of gold skyrocket in recent months, its a safe haven asset, and there has been a flight to safety. But still don't forget that about 2 year ago ZAR/GBP was closer to 15 and spiked at 17 due to political instability. In my opinion ZAR is still overvalued by about 10%-15%, and this will play itself out as developed markets recover (albeit slowly) I agree with the rest but the rand is definitely not overvalued. The sentiment toward the country is poor, we are one of the worst performing currencies in the world yet our financial basics are far, far better than, say Hungary, yet we are hammered due to sentiment. We have a weak fragile economy which has been supported by a fairly strong rand to our benefit, a weak rand now will increase the cost of everything, so if you think 50.000 odd losing their jobs in a month was a lot, keep the rand at 8.50 plus for a quarter and then lets chat again. Link to comment Share on other sites More sharing options...
ROCKITRIDEIT Posted September 22, 2011 Share unfortunately the cash under the mattress strategy, or burying your head in the sand, will lose you c5% per annum. You are managing your downside risk with no possibility of an upside, its a losing strategy in my honest humble opinion. Global corporate earnings and balance sheets are actually pretty strong right now, company valuations on a Price/Earnings basis are attractive compared to relative historic levels. a man once said "be fearful when others are greedy, and greedy when others are fearful"...he hasn't done too badly for himself Edited September 22, 2011 by touristvisa Link to comment Share on other sites More sharing options...
GrumpyOldGuy Posted September 22, 2011 Share FOr all practical purposes it will affect all imports so yes unfortunately. The existing stock however should still be at the same price. Never, how can they not increase existing stock.? The rand has collapsed by around 20% if they dont increase the price of existing stock, replacement stock at 20% extra will erase all profit they made on previous sales. You cant run a business and pay staff by losing 20% of your profit. Link to comment Share on other sites More sharing options...
GrumpyOldGuy Posted September 22, 2011 Share Global corporate earnings and balance sheets are actually pretty strong right now, company valuations on a Price/Earnings basis are attractive compared to relative historic levels. I agree, but its meaningless unless its reinvested, and its not. Companies are sitting on huge cash stockpiles, but unless they reinvest it in some meaningful way, its just pretty on the balance sheet, it means nothing to the economy. Link to comment Share on other sites More sharing options...
Big H* Posted September 22, 2011 Share I know it is bad for the country but as my salary is US$ based I will get a healthy bonus this month. Somewhere in the region of ZAR 18,000, means I can make a big dent in our bond. Link to comment Share on other sites More sharing options...
Garfield2010 Posted September 22, 2011 Share Hey Grumps You sell whatever you bought for a 20% markup or whatever. The increased price of the new stock have nothing to do with pricing of the existing stock. If the new stock is more expensive, the shop should get a larger overdraft. The mark-up is supposed to stay the same. I am however sure you will find people marking up the old stock as well to double profits. Touristvisa, that is my prediction. I think the rand can easily go to 20:1 levels should the monkeys start to enforce nationalisation. The oil price is a bit more unpredictable as you say because there is a balance and OPEC knows they can overprice themselves but it is going up steadily. Edited September 22, 2011 by Garfield2010 Link to comment Share on other sites More sharing options...
Garfield2010 Posted September 22, 2011 Share What do you do eccentric? Link to comment Share on other sites More sharing options...
Big H* Posted September 22, 2011 Share What do you do eccentric? I am a Project Director for a Civil Engineering Company in Nigeria, our core business is road building. Link to comment Share on other sites More sharing options...
javadude Posted September 22, 2011 Share unfortunately the cash under the mattress strategy, or burying your head in the sand, will lose you c5% per annum. You are managing your downside risk with no possibility of an upside, its a losing strategy in my honest humble opinion. Global corporate earnings and balance sheets are actually pretty strong right now, company valuations on a Price/Earnings basis are attractive compared to relative historic levels. a man once said "be fearful when others are greedy, and greedy when others are fearful"...he hasn't done too badly for himself Enough of the waffle and back to really important issues. Should I place my CRC order today or wait a couple of weeks to give the Rand a chance to rebound? Link to comment Share on other sites More sharing options...
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