4 Big things that will affect the rand over the next few months




After a busy start to the year – including a new president, the tabling of the 2018 budget, and a cabinet reshuffle – South Africans have now begun to assess what these changes mean for them and their pockets going forward. The recent changes are a strong reminder that not only are predictions difficult, but the unknowns may have the most significant impact.

By definition these cannot be anticipated, but is there anything we think we should look out for in 2018? Laid out are the four biggest factors that are set to change the economy and the rand in the coming months.
Ramaphosa: the election of Cyril Ramaphosa as president was viewed as being a net positive for the economy – as seen with the appreciation of the rand following the ANC conference and again with the appointment as state president.
Rand volatility: The current view is that historical valuations suggest that the rand may be undervalued and may continue to strengthen as a result.
Equities: An important consideration for equity managers in 2018 is whether these large corporations are valued prudently, and whether conditions are conducive to them performing well or whether local earning companies have been devalued to the extent that they are priced cheaply and are set to benefit from prevailing economic conditions.
Global risks: Arguably the biggest impact on interest rates and asset class returns has been the global appetite for risk.

As you all can see that there will both be positive and negative impacts, what can you do to make sure that you benefit from this and make the most of the opportunities laid here.

Source: BusinessTech
Link: https://businesstech.co.za/news/finance/231677/4-big-things-that-will-affect-the-rand-over-the-next-few-months/

Comments

  1. Unknown15 March 2018 at 04:19

    I think I could invest to benefit my self because interest rates may increase therefore increasing the value of my investment.

    ReplyDelete
  2. winfrey15 March 2018 at 05:44

    If the rand strengthens then it will be a good thing because everyone will benefit from it , hoping it will continue to increase value.The economy will also stabilise.

    ReplyDelete
  3. Zisisipo15 March 2018 at 14:30

    Wow at last our Rand will have increase. Economy will be stable due to this increase of the rand.

    ReplyDelete
  4. Unknown17 March 2018 at 12:26

    Finally something good happens.
    Right now people need to do the best they can to ensure their benefit and the benefit of their loved ones, we do not know what the future holds.

    ReplyDelete
  5. Unknown18 March 2018 at 06:54

    I think this is the best moment to invest

    ReplyDelete

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