FOREIGN CURRENCY


Investing & Money
piece written on the 3rd June 2014 by  

For those of you who follow my blog, you’ll recall my post on opening an International bank account and that I’ve been playing around with the idea around foreign investment. A quick reminder, I wanted to diversify my portfolio so I moved a sum of money over to the UK and am looking at the various options for investing over there. I’m not sure if it’s going to be through an Investec vehicle, a FTSE100 tracker or in property, but what I can see right now is that the Rand isn’t doing too well and by simply moving the money over I’m already starting to make more than I would should I have invested the money locally.

Let’s take a peak at the Rand against the Pound and the Dollar.

The first chart was shared by a friend of mine, she’s a big stock trader and a chartered accountant so I usually take what she says without question. The bounce off the ma has lead the price to test the support – if it breaks the support I believe that we really will see the Rand weaken quite considerably. It’s charts and technical analysis like this that show me that moving money overseas to the UK was a good move.

GBP vs ZAR

The next chart shows us the USD against the Rand, this chart was shared by a friend of mine but I’m uncertain of the source. However, the analysis is a good one and I believe that it’s accurate, we are going to see the Rand weaken against the Dollar. This chart predicts that we’ll surpass the R11,39 high that we had in January, I believe that it could go higher in the long term.

usdzar

With local inflation increasing and more pressure on the consumer than ever, diversification is absolutely key in any investment strategy regardless of your goals. I am not expert and never claim to be one, but across my portfolio I’m seeing very interesting movements and that’s what lead me to exposing my portfolio to the International market.

Are you investing overseas?

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