Welcome to the latest edition of The Wealth Perspective

The first quarter of the year saw the world almost come to a standstill, consumed by shock as the Russia/Ukraine conflict ensued, oil prices surged, and global inflation numbers coursed upwards. Coupled with this, Covid-19 continued to remain a real risk, although its intensity was reduced to a dull murmur in the background as infection rates slowed. This backdrop certainly dented any hopes of economic recovery in the short term.

The second quarter was characterised by an appreciation that although markets remain uncertain, one cannot remain passive forever. Globally, people decided the show (so to speak) must go on, and the removal of Covid restrictions by most governments echoed this sentiment. Locally, we followed this lead, casting away our masks and other Covid-related restrictions.

Global economies continued to battle stubbornly high inflation however, which negated any hopes of a swift recovery. Our economy initially showed signs of resilience as domestic growth for the second quarter showed signs of improvement and grew marginally. Unfortunately, the global inflation trend eventually caught up with us, leading the SA Reserve Bank to raise interest rates in a bid to curb inflation.

The Eskom crisis continues to weigh heavily on all of us and threatens to thump out any green shoots the economy may show. It is proving to be one of the toughest tests we’ve ever faced as a country and requires us to dig deep for the resilience necessary to push through. We can only trust that there is a clear and firm plan in place to handle this predicament effectively. I’m quite certain that our collective wish as a country is that one day this will be but a speck in the rear-view mirror.

September was Heritage Month and I’m quite determined to focus on what it stands for – an opportunity for all of us to celebrate our individuality and our ability as a country to come together and beat the odds. It’s also springtime – a season romanticised as one that is full of hope and promise. It is in this light that we look forward to the eventual market recovery that must surely come once we conquer inflation again.

Oil prices are starting to ease somewhat and inflation, although it continues to track above the target band, is showing signs of deceleration. One might conclude that we are near the peak of the interest rate cycle, with the Bureau for Economic Research (BER) retail survey showing slightly elevated confidence levels and local employment figures showing small signs of recovery. On the investment front, we believe there is still a bounty of opportunities, which we will continue to highlight through the work of our equity research team.

The volatile environment we find ourselves in will not go away overnight – after all, markets are nothing if not unpredictable. However, this should not leave you filled with trepidation. If you find yourself lying awake at night, worrying about how best to insulate your investments from the current tide of volatility, I implore you to seek advice from one of our accredited advisers, who are here to be the guiding hand you need. Our team of experts have prepared thorough and well-articulated views on how best to navigate these unprecedented times.

Rest assured that while things remain volatile, your hard-earned money is still better off in the market and under advice, rather than in a box under your mattress.

A Word from our CIO - Adriaan Pask

Industry Views - Nirdev Desai

Investing and trading - Wendy Myers

Estate Matters - Mariska Comins

Quarterly Insight - Jan van der Merwe

Employee Benefits Insight - Robyn Laubscher

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