Financial markets reacted sharply to the announcement and postponement of trade tariffs in April 2025. Despite the volatility experienced during Q2 2025, the markets recovered well and posted attractive returns for the six months to June 2025.

Concerns about the conflict between Iran and Israel briefly affected the prices of financial assets and the oil price momentarily spiked to US$77 a barrel. In South Africa, the SARB released a discussion document indicating that the target point for inflation may be set at 3% in the future. This is an exciting development and, if implemented, could result in a reduction of the funding costs of South Africa’s national debt.

Principal Investment Consultant Marcus Rautenbach reviews recent economic and financial market developments, concluding that returns rewarded investors for the volatility in the six months to June 2025.

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