Tag: market volatility

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.

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.

There is a new sheriff in town. Global investors have been digesting the change in policy direction after President Trump’s return to the White House. In contrast to his first term, actions on the trade front have been a policy priority and the rules of the game are changing.

The economic reality in South Africa today leaves many middle-class households grappling with mounting expenses. They also face dwindling disposable income, which makes successful retirement savings increasingly difficult. In addition, there is a persistent inability to save for retirement.

Markets are unpredictable, and 2025 has started with extreme volatility. Aggressive tariffs and abrupt national announcements have forced investors to navigate constant surprises. These events have increased uncertainty and volatility across financial markets. However, uncertainty can create opportunities for active managers with a long-term investment horizon.

Despite great strides being made towards shaping a more diverse and equitable future for the world of investment, many women still underestimate their abilities. A growing body of research, however, suggests that women’s natural traits may in fact put them at a significant advantage compared to their male counterparts.

As South Africa’s energy sector continues to evolve, understanding the changes in regulations, contracts, and market dynamics is crucial. The restructuring of South Africa’s regulatory framework, especially within the energy sector is critical given the present crisis the country is in. Unbundling, where different parts of the energy sector are separated, amounts to far more than just paperwork.

Following the events of October last year, the situation in the Middle East has become increasingly volatile. In April, Israeli forces attacked the Iranian consulate in Damascus, killing most of the Quds Force leadership. The Quds Force is part of the Iranian National Revolutionary Guards Corps (IRGC), which deals with Iran’s overseas activities and its relationships with its proxy forces in Syria, Lebanon, and Iraq.

South Africa’s major banks registered resilient growth against difficult operating conditions and a complex macroeconomic environment. Combined headline earnings growth of 13.8% against FY22 to R113.2 billion, combined ROE of 17.6% (FY22: 17.1%), net interest margin of 458 bps (FY22: 430 bps), credit loss ratio of 102 bps (FY22: 82 bps), cost-to-income ratio of 52.2% (FY22: 53%), common equity tier ratio of 13.2% (FY22: 13.5%).

High interest rates increase the income opportunity of one’s savings and investments. In a volatile economic landscape, the importance of prudent financial planning and savvy saving strategies becomes more critical than ever. When inflation is high, the value of money seems to shift like sand beneath our feet, with a knock-on effect on interest rates and the cost of living.