Tag: market conditions

Some months ago, I exchanged views with Buddy Wells, one of South Africa’s more vocal supporters of Modern Monetary Theory (MMT). In our debate, he argued a familiar point. According to him, governments can print money to employ the jobless without causing inflation, as long as those being hired are not already doing anything useful.

Prosus delivered a strong performance during a transformative year. We have exceeded our profitability targets, as we build the leading lifestyle ecommerce company in Latin  America, Europe and India, driven by AI and innovation.

Many traders fall into the trap of overtrading, chasing short-term gains without a structured strategy. Others overdiversify by spreading capital too thinly across multiple assets without a clear risk management plan. Striking the right balance is key to long-term success.

Periods of market turbulence have long tested investor conviction. When uncertainty grips financial markets, traditional portfolios often reveal vulnerabilities. Recently, shifting US policies, fluctuating interest rates and geopolitical tensions have driven this uncertainty.

The private equity (PE) fundraising landscape, historically dynamic and competitive, has become increasingly challenging in recent years. As a number of funds compete for limited investor capital, a consistent question we get as fund formation lawyers is: "How have successful asset manager clients secured capital in this crowded market?"

Private markets are less liquid than public markets. Locking up funds for a significant period is unfamiliar to many private investors. Regulators worldwide are concerned about risks associated with private assets during market stress. A key regulatory focus is on liquidity mismatches in open-ended funds investing in illiquid assets. These mismatches occur when funds allow excessive flexibility on redemptions.

We live in a volatile world where geopolitical risks, economic inflation, natural disasters and an increasingly complex regulatory environment are applying pressures on all fronts, including the insurance sector. Underwriting requirements are becoming stringent, and prospective clients are having to provide far more granular information about their portfolio of risks as well as risk mitigation measures, while reduced capacity and insurer appetite for certain classes of risks remains a real concern.

The South African Reserve Bank (SARB) recently announced the completion of the observation period for the South African Rand Overnight Index Average (ZARONIA). This development marks a pivotal shift in South Africa’s financial landscape, transitioning from the Johannesburg Interbank Average Rate (JIBAR) to ZARONIA as the primary reference rate.

Starting a new business is an exhilarating venture, filled with both opportunities and challenges. However, the path to success requires more than just a great idea - it demands a strategic approach, careful planning, and the ability to adapt to evolving market conditions. 

Whether you’re stepping into the property market for the first time or you're an experienced investor, the real estate market can feel overwhelming with ever-changing trends and a maze of industry jargon. To help you make informed decisions, it's essential to understand these key terms. I break down some of the most important property terminology, helping you navigate your real estate journey with confidence.