Tuesday, 25 August 2015

Samurai Summary: Top Tweets 25/08/2015

While global markets were in turmoil the twitter community was abuzz with this particular hashtag that trended  to the top yesterday, #StrongerthantheRand making huge waves amongst South Africans. Although with much sarcasm and humour the implication of the Rand tumbling to new all time lows and crippling impact on the South African economy is yet to be realized and I assumed the response won't be positive. I suppose the real test is now is are South African consumer wallets stronger than the Rand ?


What would a blog post be these days without a tweet of some sorts about stock movements in China. If you were expecting more overtop acrobatic antics overnight you would've guessed right as Chinese stocks once again slumped lower with the Shanghai Composite ending the day down 7.63%. However there was a ray of sunshine as other regions turned a bright shade of green with the ASX 200 closing firmly up 2.72% , KOSPI in South Korea up 0.92% to name but a few. What is evident from today's picture is that volatility is here to stay for a while and caution should be heeded.
I just knew this was going to happen, the SARB (South African Reserve Bank) said yesterday that it may intervene if necessary following the turmoil witnessed yesterday on financial markets. If one reads closely you'll note the other emerging economy's either unpegging or intervening with their currency ever since the Chinese devalued the Yuan. Would it be right to do it? I don't think so at all, we all know what happened the last time SARB tried to intervene, South Africans were left facing interest rates over 25% which ultimately put a damper on things economically. Can it happen again? Yes it can.



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