Tag: market volatility

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.

A record amount of R1.6 trillion is currently held in South African bank accounts as retail savings deposits. This is a staggering amount of money which is currently conservatively invested. In many ways, this movement of funds reflects the significant uncertainties faced by investors, both in South Africa and globally.

While climate has dominated investor energy for environmental and social issues around the world until now, the ‘S for Social’ in ESG, which refers to a company’s impact on society, how it treats its staff, suppliers, customers as well as the communities in which it operates, is starting to garner more attention from investors. 

Staying calm amid market volatility is not easy, given the constant stream and access to news headlines and market updates. When investing, it’s important to keep in mind that stock markets will experience periods of sustained growth and decline, respectively.

2022 was an extremely tough year for global fixed income assets, with long bond yields rising sharply in developed markets resulting in one of the worst years for bond markets in almost a century. Emerging market bonds suffered both from a correlated move higher in yields in line with developed market bonds, but also from heightened volatility.

As capital markets grapple with profound shifts in the macro-economic and geo-political landscapes, for investors, 2022 is turning into a year we’d rather forget. Following relative calm over the South African winter, volatility in bond, equity and currency markets recently returned with a vengeance.

There is so much uncertainty in the world today – from the two-year-long fight against the pandemic and consumers’ battle against war-induced fuel hikes, to investors trying to interpret global recession concerns or South Africans’ struggle with Eskom.

It is hard to deny there is still a gap between men and women, especially when it comes to finances. Yet, when it comes to investing, women, just by being themselves, have some advantages over their male counterparts. Some women may still experience the effects of the gender pay gap and slower career progress when compared to their male counterparts.

Searching for photos of mountain climbers (not the exercise), you’ll more often than not find images of happy, jolly people on the summit, or with the abyss behind them. You rarely see the whole journey, which can make it seem as if reaching the top is only for a select few.

In his previous budget speech, Minister Mboweni mentioned a host of different taxes that the revenue man would soon be collecting from us. From personal income tax, to fuel taxes, corporate and carbon taxes – the list was long. But one tax he didn’t mention – and to his credit it is not an official tax (but I would argue it should be) – is behaviour tax.