Four from four. Each of the last four Fed cutting cycles has seen the rand blow out…— John Cairns, Strategist - Rand Merchant Bank
The South African rand lost 30% of its value within 12 months after the start of each of the last four US rate-cutting cycles and 40% of its value within 15 months.
Each time the Fed has cut rates, the US economy has slowed sharply. Each time the US has slowed sharply, the rand has blown out…— John Cairns, Strategist - Rand Merchant Bank
Listen to the interview in the audio below (and scroll down for quotes from it).
Fed cuts by itself are positive for the rand… That’s why it’s gone from R15 to the dollar to under R14 to the dollar… However, three to 12 months after the Fed cuts, we experience weakness in the US economy… and significant rand weakness…— John Cairns, Strategist - Rand Merchant Bank
The Fed cutting signals something is going wrong in the US economy…— John Cairns, Strategist - Rand Merchant Bank
…R18, R19 even R20 to the dollar if history repeats itself… Take this risk seriously…— John Cairns, Strategist - Rand Merchant Bank
It didn’t matter what our fundamentals were… global themes are so strong; it doesn’t matter what happens here…— John Cairns, Strategist - Rand Merchant Bank
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
Zwelakhe Mnguni (Benguela Global Fund Managers) suggests there is a genuine risk of another Steinhoff/Tongaat scenario.
Every year in July (since 2013), The Money Show’s Bruce Whitfield interviews supersaver Julia. It’s becoming harder for her.
The Money Show’s Brue Whitfield interviews consumer journalist Wendy Knowler.
How realistic is the 'eco'? The Money Show’s Bruce Whitfield interviews Ronak Gopaldas, Africa Analyst at Signal Risk.
The Money Show's Bruce Whitfield interviews Pieter du Toit, author of "The Stellenbosch Mafia: Inside the Billionaires' Club".
Bruce Whitfield interviews Darren ‘Whackhead’ Simpson about his attitude to money (hopes and fears, successes and failures, etc.).
The choir has been wowing TV audiences in the US and across the world with their energetic performances.
Large eye stickers are being stuck to the bottom of surfboards in order to deter sharks.
Daily Maverick associate editor at Scorpio Sikonathi Mantshantsha takes a look at the week's financial news.
The 2014 letter on an ANC letterhead signed by then TG Zweli Mkhize thanks Bosasa's Gavin Watson for a 3 million party donation.
The feline was found by detectives at a property in Athlone on Wednesday following a tip-off.
The inspiring South African choirU2's Beautiful Day at America's Got Talent quarter-finals.
Magda Wierzycka – Sygnia’s renegade CEO – on her attitude toward money (hopes and fears, successes and failures, etc.).
The reason for the leakage has been revealed, explains Table Mountain Aerial Cableway MD Wahida Parker.