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Kanaan Asset Managers
Further potential for Rand recovery, April 2014 |
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Kanaan Asset Managers |
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Further potential for Rand
recovery |
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April 2014 |
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According to the Efficient
graph, there remains some capacity for the difference between South
African bonds and US Bond yields to normalise, which might be associated with
the further Rand recovery. |
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This is good news over the
short term for South African equities and bad news for South Africans exposed to
offshore funds, in terms of its Rand value. |
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At this stage we believe that
for the medium to the long term that the Rand will eventually be under pressure
again, because of the tapering off of quantitative easing and the stronger
prospects for equities in first world countries and taking into account Rand
depression over the past 30 years, as shown in the 2nd graph. |
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Andre
Delport |
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