Entries by Christine van Graan

Local equities: Opportunities for the patient investor?

Over the past few years, South African (SA) equities have seen significant foreign outflows and extreme bearish sentiment from the global investment community. This was amid an environment that supported a shift away from risky markets, and various local headwinds or own-goals. The 2023 Alexander Forbes Large Manager Watch Annual Survey showed that even local asset managers have significantly down-weighted their allocation to SA equities over the past 5 years, holding just under 40% compared to the long-term average of 55%.

The dollar’s global dance: Stability and strain

In this week’s exploration of economic narratives, we look at the almost omnipresent influence of the United States (US) dollar: A currency that wields unparalleled sway over the international financial landscape. While the US accounts for a modest 15.5% of global gross domestic product (based on purchasing power parity), its currency forms the backbone of global reserves and dominates international transactions. The implications of this scenario are profound, both economically and geopolitically.

How to outperform cash

Cash provides an attractive interest rate but other options are available to enhance this yield.

Corporate manoeuvres and macro-economic indicators

In this week’s economic commentary, we dissect an intriguing interplay between corporate manoeuvres and macro-economic indicators that could shape the financial strategies of investors and policymakers in the near future.

Are You Informed Enough To Navigate SA’s Economic Landscape?

As South Africa (SA) navigates a complex economic landscape, the country’s central bank remains steadfast in its commitment to maintaining stringent inflation targets despite the challenges posed by rising global commodity prices and the mounting pressure that the middle class is under.

Economic Resilience, Food Inflation, and Climatic Uncertainty

In the vibrant tapestry of South African culture, the traditional barbecue, or “braai” as it is affectionately known, is more than just a culinary festivity; it is a national pastime that brings people together. Yet, in a fascinating twist, this cherished tradition has also become a lens through which we can glimpse the shifting sands of our country’s economic landscape. Bloomberg’s innovative Shisa Nyama Index, which tracks the cost of braai ingredients, offers early signals of where food inflation might be heading, weaving a complex story of economic resilience, climatic challenges, and the intricate dance between supply and demand.

Are your investments truly diversified?

Recent years have seen large performance rotation in asset classes, styles, sectors and regions. How do you protect yourself against this volatility and performance swings?

Significant economic shifts are on the horizon

Last week’s financial landscape was notably vibrant, marking a significant stride in global stock markets, particularly in the United States. The S&P 500 and Nasdaq Composite, two key barometers of market health, illustrated a compelling narrative of resilience and optimism among investors, sustained by central banks’ monetary policies on both sides of the Atlantic.

Significant economic shifts are on the horizon

Now, as the world stands on the cusp of significant economic shifts, investors find themselves navigating a landscape where global interest rates are hovering near 17-year highs. This environment, primed for a transition towards rate cuts, poses unique challenges and opportunities for those in pursuit of yield.

Turning victims into victors

A victim can never be a victor unless they change themself into one. Consequently, a country stuck in a prevailing ideology of victim mentality cannot create sustainable, inclusive economic growth. Put differently, it cannot create wealth, which includes skills, jobs, and opportunities.