Tag: equity market

We have once more partnered with FTSE Russell to launch a new multi-asset index solution for the South African market, leveraging the long-standing relationship between the two organisations and the rich base of the existing index offering.

Saving and investing consistently is essential when planning to build a large enough nest egg to retire comfortably. The latest 10X Retirement Reality Report showed that out of 15 million economically active South Africans, 67% have no retirement plans.

‘Blank cheque’ companies are attracting billions of dollars from retail investors and hedge funds in search of capital gains and access to private market returns. These Special Purpose Acquisition Corporations (SPACs) promise firms a simpler, cheaper and alternative path to a public listing. They also come with caveats that investors should carefully examine.

When retail investors grouped on Reddit, a social media platform, to buy shares in a number of heavily shorted firms last month, commentators inferred that investors can move markets through online trading. The episode cost short-selling hedge funds millions. It also triggered questions about equity market valuations and whether central banks have been too generous in their pandemic responses.

Global equities can continue to perform well in 2021, but tech may have to share the limelight with some unloved areas. Meanwhile, a number of mega-trends will continue to gather pace. Global equities are by no means cheap, but they are reasonably valued.

Many of us became more comfortable with using technology for everyday purposes like buying groceries, clothing and medication. One aspect of investing that was magnified during the lockdown was the importance of diversification. Introducing different asset classes and geographies into a portfolio can certainly be put down as one of the major lessons from last year.

Global financial markets whipsawed in 2020 in reaction to a devastating COVID-19 pandemic and the subsequent decisions taken by governments and policymakers to protect citizens and keep economies afloat. Higher levels of uncertainty were reflected in the initial spike in the CBOE Volatility Index (Vix) in March 2020 before unprecedented fiscal and monetary stimulus calmed markets during the year. 

Rising global headwinds, heightened market volatility and the growing threat of a global recession mean that, as we approach the end of the current economic cycle, ensuring that your investment portfolio has the appropriate safety measures in place is more important than ever. But while we’ve all heard the adage that the key to managing risk is diversification, the truth is that this is only half the story.

Two months into President Cyril Ramaphosa’s new government for the next five years, South Africans have been made aware of the stark reality of a higher-than-anticipated contraction in the economy in the first quarter of 2019. While the JSE all share index rebounded in June, it comes off a miserable month of May.

The cracks may be starting to show in the ten-year equity bull market, but does this mean that the cycle is now over?