Locally and abroad, political developments continue to dominate developments in economies and financial markets. The contribution made by offshore share exposure to retirement fund investment portfolios has come under pressure, especially as the prices of the Magnificent Seven have been pegged back. Domestic shares continued their good performance, but mostly commodity producers such as gold and platinum miners performed well recently. Financial shares and retailers delivered a modest performance.
Principal Investment Consultant Marcus Rautenbach reviews recent economic and financial market developments concluding that the rotation of themes that drive investment returns requires a well-balanced approach and a diversified portfolio.
Financial markets weakened considerably in the first few days of April 2025. The MCSI All Country World Index was down by 7.5%, the S&P 500 Composite Index by 9.6%, and the NASDAQ Index by 9.9%. The FTSE/JSE All Share Index was down by 8%, and domestic bonds weakened by 2.5%. The rand’s exchange rate closed weaker at R19.13 on Friday, 4 April 2025. The market turbulence follows widescale tariffs imposed on trading partners by the United States and the announcement of counter-tariffs by some of these trading partners. Investors are likely to remain nervous in the near term.