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Speaker 1: The Money Show, the market.

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Speaker 2: Grant Nats, portfolio manager of Benguela Global Fund Managers, Grant

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Speaker 2: Good evening, So Doronald Trump announcers excuse me, President Trump

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Speaker 2: announcers that there will be a sort of ceasefire, you

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Speaker 2: won't attack Iran's energy facilities for a period, and markets

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Speaker 2: kind of go, no, we're still depressed. I mean, it

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Speaker 2: ready just seems to prolong the agony.

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Speaker 1: Frankly, Yeah, indeed, Stephen, it really is. It's a question

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Speaker 1: of are both parties willing and able to find a

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Speaker 1: middle ground. And remember, Iran doesn't have a lot of leverage,

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Speaker 1: but the key leverage they do have is the straightforward moves.

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Speaker 1: And if you think back to China and the tariff war,

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Speaker 1: the rare earth standoffs, right, they are the controlling They

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Speaker 1: had control over that supply chain, and they leverage that

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Speaker 1: to the maximum. And I think we've seen that with Iran.

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Speaker 1: I think the longer this goes on, the more it

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Speaker 1: establishes their leverage. Their tote point is really around that

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Speaker 1: control over that straight and they're not rushing to find

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Speaker 1: a conclusion here, although it's politically not expedient for Krump

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Speaker 1: to find a resident I mean, it is expedient. He

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Speaker 1: wants to get it finished now, but it doesn't suit them,

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Speaker 1: and so there's this ton of standalfs. Israel has their

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Speaker 1: own agenda. So I'm finding it hard to see kind

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Speaker 1: of the light at the end of the tunnel in

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Speaker 1: the near term, even though I think at the end

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Speaker 1: we'll eventually get there.

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Speaker 2: I mean, it's been interesting to watch which stocks are

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Speaker 2: being kind of stable during the spirit, and stable during

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Speaker 2: the spirit you're doing well. So I think British American Tobacco,

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Speaker 2: bit Core, Advitech, I suppose food stocks. I mean these

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Speaker 2: are all quite defensive. I mean, this is what I

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Speaker 2: would be buying at this moment.

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Speaker 1: Yeah, indeed, there's a clear defensive bias in the market,

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Speaker 1: but not all stocks are equally defensive. So your food

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Speaker 1: producers are going to struggle with this inflation and this

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Speaker 1: input cost increase because they don't have the pricing power

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Speaker 1: that the food retailers have. And including a bit Corp,

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Speaker 1: which has also got a rand hedge quality to it

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Speaker 1: ETI or British American Tobacco's got a nice rand hege quality,

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Speaker 1: and how the bush has been quite defensive. So without

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Speaker 1: a doubt, there's a defensive talk to the market, and

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Speaker 1: disappointingly gold has not been in that camp.

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Speaker 2: I mean, we've had a sort of difficult month. I mean,

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Speaker 2: the month of March has really been defined by this.

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Speaker 2: Is there any kind of sector that's standing out at

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Speaker 2: the moment.

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Speaker 1: I think, I guess there's this negative standout, which is

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Speaker 1: gold for me, which typically should have been a bit

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Speaker 1: more defensive in an environment like this, But I think

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Speaker 1: there's so many speculators and you know, retail investors maybe

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Speaker 1: in that trade that it's become a risk on, risk

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Speaker 1: off trade, just like the rest of the market. And then,

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Speaker 1: of course, as you said, the defense of the rand

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Speaker 1: hedges and energy has been incredibly good. The likes of

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Speaker 1: the coal players and fastle they are clear beneficiaries of

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Speaker 1: this playing out, but probably will be for some time still,

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Speaker 1: not just a one off win for them.

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Speaker 2: Grant Nata, thanks so much much. Portfolio manager Binguela Global

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Speaker 2: Fund Managers