Inflation is spiking in Zimbabwe (again). Why high interest rates aren’t the answer
The central bank of Zimbabwe has raised its benchmark rate from 80% to a fresh record of 200%. This increase comes as Russia’s invasion of Ukraine is driving global commodity prices higher, exacerbating inflation in many countries around the world, including Zimbabwe. Zimbabwe’s Finance Minister Mthuli Ncube’s thinking is that aggressive tightening of monetary policy… Read More
YOUR INVESTMENTS AND THE CHANGING PRICE OF MONEY
With inflation at multi-decade highs in most developed countries, central banks have now entered a rate hiking cycle. This has lifted the price of money, as well as the hurdle for the prospective returns of other asset classes. While we believe these changes have been priced in reasonably effectively by financial markets, there are risks… Read More
GLOBAL MARKETS: HOW NERVOUS SHOULD INVESTORS BE?
In the current murky investment environment, it is an understatement of note to suggest that financial markets are jittery and have in many sectors been pushed into bear territory. Given the material sell-off in both equities and bonds, just how nervous should investors be? And how should one approach portfolio construction in these circumstances? Since… Read More
Rishi Sunak announces windfall tax
The noise The Federal Reserve has upwardly revised the forecast for its preferred inflation gauge, the PCI to 4.3% this year with predictions that it will decelerate to 2.5% next year. Members of the policy committee aren’t unduly worried about economic growth and expect it to “advance at a solid pace over the remainder of… Read More
Real Assets – A refuge in an uncertain world
We’re only just over halfway through H1 2022 but already investors have had to face a plethora of challenges – problems in global supply chains that just won’t go away even though the pandemic is now more than two years old, uncertainty about the timing and magnitude of interest rate rises, the return of an… Read More
US TECH STOCKS: IS IT TIME TO BUY?
Since peaking in November last year, the Nasdaq Composite Index – a proxy for the US technology sector – has declined by 17%. While valuations at the high point of the index were stretched and posed a clear risk to investors, they are now heading towards more palatable levels. Although we don’t yet see the… Read More
We bring you current commentaries to unpack areas of interest in the financial sector
Sanlam Multi Strategy Fund and Sanlam Real Assets Fund update (October 2019)