My 2 Cents

Sasfin BCI Flexible Income Fund March 2020

Philip Bradford discusses the positioning of his fund in this video. The discusion can be a bit technical but note at 9:41 on the video were he discusses the effect of markets of other countries that have been downgraded. It will be interesting to see how South Africa would managed and it might be diverent…
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Corona-virus impact and world recession – Kevin Lings

Kevin Lings (Stanlib) discusses the impact of the Corona-virus on the local economy and its impact on the world economy. You can click on the link for the video – 72 minutes:

A Short History of Dead Cat Bounces

Posted March 29, 2020 by Ben Carlson After falling more than 4% the previous Friday and nearly 3% last Monday, the S&P 500 closed at a drawdown of almost 34% from all-time highs. Things were looking bleak for the market but then a funny thing happened — it finally started going up…in a hurry. A 9.4% gain on…
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Junk status for RSA: Not all doom and gloom

ALWYN VAN DER MERWE, Director of Investments, Sanlam Private Wealth The inevitable has now finally happened. In its latest sovereign credit rating review, Moody’s rating agency has downgraded South Africa to junk bond status – on the first day of a national lockdown in response to the escalating global COVID-19 pandemic. While our Finance Minister believes…
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Allan Gray’s View – COVID-19: Evaluating market risk versus opportunity

Duncan Artus, Allan Gray, discusses the context, the portfolios and the opportunity set, encouraging investors to try to behave rationally during this extremely unsettling time. Watch here. Andrew Lapping’s article, Coronavirus: Taking stock of the state of the markets, (referred to in the video) you can read here.

Moody’s downgrade: The implications for investing in SA

by Nolan Wapenaar, Anchor Capital Ltd, Co-CIO Moody’s has downgraded South Africa (SA) to Ba1 with a negative outlook (from Baa3). SA is now junk-rated by all major rating agencies. Losing our last investment-grade rating will mean being booted out of the World Government Bond Index (WGBI), with potentially R80bn to R120bn of bonds that…
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COVID-19: 36ONE Performance and Positioning.

The financial markets have been under extreme pressure since the outbreak of COVID-19. We are living through extraordinary times and as a result, financial markets have come under extreme pressure. In light of this, we thought we would share our thoughts on the recent market collapse as well as how our funds are positioned during…
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Coronation: Managing your capital through a time of crisis

In six short weeks Covid-19, initially a regional epidemic confined largely to the Hubei district in China, has become a global pandemic. The brutal, and in this case ruthless, power of exponential growth has been on display for all to see. At the time of writing it is present in 155 countries, with 198 000…
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The Historic Sell-Off & a Game of Expectations

Posted March 17, 2020 by Ben Carlson (A Wealth of Common Sense) These are the 6 worst daily returns for the S&P 500 since 1928: 10/19/1987 -20.5% 10/28/1929 -13.0% 3/16/2020 -12.0% 10/29/1929 -10.2% 11/6/1929 -9.9% 3/12/2020 -9.5% Two out of the 6 have come within the past week. The country as a whole may not be taking the…
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