PSG Wealth Umhlanga Portfolio Management

Feel free to reach out to PSG Wealth Manager Braam Fouche directly.

Global Overview

2024 was a year of significant global events, which left their mark on economies and markets around the world. The year began with a continued focus on inflation control across major economies as central banks continued to navigate the fine line between controlling inflation and fostering growth.

One of the major geopolitical developments has been the ongoing conflict in Palestine, which escalated earlier this year. This conflict had a noticeable impact on global markets, contributing to increased volatility, particularly in the energy and commodities sectors.

Despite these challenges, the broader global economic outlook showed signs of resilience. Geopolitically, tensions in Eastern Europe saw a gradual de-escalation, leading to a sense of stability in global markets. Efforts to transition to sustainable energy sources have gained traction, with international agreements reinforcing a commitment to a greener future.

United States Economy and Politics

The United States, as a global economic leader, remained a focal point throughout 2024. The Presidential Election in November was a key event, resulting in a new administration with policies likely to impact trade, regulation, economic growth, and bolstering the all-conquering dollar.

As we head into 2025, the U.S. market outlook remains cautiously optimistic. With inflationary pressures expected to ease and the tech sector continuing its strong performance— driven by advancements in AI, clean energy, and biotechnology— there is potential for sustained growth. However, geopolitical tensions and policy shifts will need to be closely monitored as they may affect market sentiment.

Emerging Markets: A 2025 Outlook

In 2024, many emerging markets adopted structural reforms to attract investment, improve governance, and address socio- economic challenges. China continued to focus on economic recovery, shifting from strict COVID-19 policies to a more growth-oriented strategy. Additionally, efforts to transition to greener energy saw renewed momentum, with international agreements to cut carbon emissions gaining broader support. These shifts played a pivotal role in commodity price fluctuations and reshaped the energy markets.

Looking ahead, the outlook for emerging markets is cautiously positive. While challenges such as global inflation and currency fluctuations remain, the demand for resources, manufacturing capabilities, and the expansion of technology-driven sectors are likely to drive growth.

South African Economy and Local Dynamics

Closer to home, South Africa faced its unique set of challenges and triumphs in 2024. Load shedding remained a critical issue early in the year, but government and private sector initiatives aimed at stabilizing the electricity supply showed promising progress. Economic growth, though modest, exceeded expectations in some sectors, particularly in mining and agriculture, driven by higher commodity prices and improved global trade dynamics.

On the political front, the general elections this year were a crucial event for South Africa, with the outcome emphasizing a need for continued economic reform and stability to bolster investor confidence. Positive developments in local infrastructure projects and small-to-medium enterprise support provided a welcome boost to job creation and economic activity. We increased our broad equity exposure in your portfolios and achieved a strong rally across all our clients’ accounts.

Looking forward to 2025, we remain optimistic as reforms and investment initiatives aim to address structural economic challenges, support job creation, and improve overall economic resilience.

Thank You

As we close out 2024, we want to express our deepest gratitude to you, our valued clients. It is your trust and partnership that allow us to navigate these complex financial landscapes together.

We also want to give our staff the opportunity to rest and recharge so they can return in the New Year ready to continue providing you with the best possible service. Our office will be closed for the Festive Season from 17 December 2024 to 6 January 2025.

To ensure that we can assist you effectively before the holiday break, we kindly ask that all instructions and any financial matters requiring attention be finalized prior to 13 December 2024. This will allow our team to handle your requests in a timely and efficient manner.

We appreciate your understanding and cooperation and look forward to reconnecting with you in 2025.

Wishing you and your loved ones a joyful and restful Festive Season. May 2025 bring prosperity, peace, and new opportunities for us all.

Warm regards,

The PSG Wealth, Umhlanga Portfolio Management Team

Office closure: Tues, 17 Dec 2024 - Mon, 6 Jan 2025.

If there are any emergencies you can contact me on my mobile number, 082 573 6000.