Assets & Investments

The South African Reserve Bank’s recent decision to reduce the repo rate by 25 basis points, bringing it to 7.25%, offers a glimmer of hope for prospective homeowners, particularly first-time buyers. This move, aimed at stimulating economic activity amid subdued inflation, presents both opportunities and considerations for those looking to enter the property market.

Many people dream of financial freedom, but the path to achieving it is often misunderstood. It’s not a destination you can reach overnight but rather a carefully navigated journey. To succeed, you must focus on the long term, make smart adjustments and understand the importance of managing risks and diversification.

In certain quarters, art has become an increasingly attractive alternative investment as part of a diversified portfolio. One of its biggest advantages is that, at the very least, it tends to hold its value. Over time, it can also increase in value. In the meantime, buyers get to enjoy their acquisitions.

President Donald Trump’s so-called Liberation Day tariffs, announced in early April, have once again reminded investors of the fragility of market confidence. This is especially true in the face of policy missteps. The scale and pace of these measures have sparked sharp reactions. They have wiped out trillions in equity value within days and created confusion across global supply chains.

Gold's long-term fundamentals were already looking positive. By effectively rejecting the US role as reserve currency issuer, President Trump is super-charging these trends. We have long maintained the view that long-run global geopolitical and fiscal trends have the potential to drive a very powerful bull market in gold.

With inflationary pressures moderating and economic challenges persisting, monetary authorities will prioritise gradual rate cuts in 2025. This deliberate pace reflects a balance between stimulating economic growth and avoiding financial instability. For example, the Federal Reserve and the European Central Bank may follow similar trajectories.

For many South African farmers, a farm is more than an asset – it is a family legacy, a business and often the entirety of their net worth. However, when it comes to estate planning, one critical factor is often overlooked: liquidity. Without adequate liquid assets, heirs may encounter financial strain and operational challenges. In some cases, they may even be forced to sell the family farm to meet estate commitments.

Africa presents a compelling – albeit complex – investment landscape. While challenges such as political instability, currency volatility, and limited liquidity persist, significant opportunities counterbalance them. These growth options stem from powerful demographic shifts, digital transformation, and burgeoning intra-continental trade.

Pricing a home correctly from the outset is key to maximising returns and ensuring a smooth selling process. Setting the right asking price can mean the difference between a quick, successful sale and a prolonged listing. A listing that struggles to attract buyers can become problematic.

Forecasting economic and market variables is inherently difficult. Forecasting is tough. Research suggests that only 23% of professional forecasts prove accurate. Add in US policy uncertainty - President Trump signed a flurry of executive orders on his first day in office. As a result, predicting the outlook for the global economy becomes even more challenging than usual.