Moody’s downgrades South Africa to Junk Status

It’s fair to say that the 27th March 2020 might be regarded as one of South Africa’s more unknown days. The day started with all South African’s being ordered to stay at home and only leave their houses should they be involved with essential services, or to stock up on food and supplies. Late in the evening, confirmation was received from Moody’s that South Africa had lost its investment-grade rating and was now junk status.

In the attached article Marriott ‘The Income Specialists’ provide a brief summary as to the effects that the downgrade will have and the opportunity that has arisen from this downgrade. Although the current volatility and uncertainty in the market causes all investors to become anxious, the opportunities to ‘enter the market’ at a reasonable price will lead to potential long-term real returns for investors who can ignore all the ‘noise’ and focus on the fundamentals of the investment.

The Fund Managers managing our clients’ funds, remain focused on these long-term goals and will continue to remain level-headed in these uncertain times and purchase stocks at attractive valuations which will lead to capital appreciation for those investors who continue to remain invested and focus on their long-term financial plans.

A reminder that although our offices are closed we continue to work from home and are available to meet with clients over various media platforms such as Skype, Zoom or the telephone.

Stay safe and God bless!

“The only certainty, is that nothing is certain.” Pliny the Elder

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