LONG-TERM RAND WEAKENING IS THE MOST LIKELY SCENARIO
"You may be in lockdown, but your money still needs to go out and work. And Mr. Market has it as confused as ever, haphazardly running …out of equities and emerging market currencies like the rand, some into safe-haven assets like the dollar and gold. Between 9 March and 8 April, the rand depreciated by 14.5% against the dollar.
Investors in dollar-denominated gold would have earned 13.7% (since gold has weakened slightly, offsetting the rand gain). A South African with a purely domestic equity portfolio could have lost (on paper) up to 22% of value, which was the JSE All-Share Index’s worst point in the panic."
Click below to read the full article by Justin Clarke, COO at OrbVest:
Do not hesitate to contact your Investment Consultant for more information.