For our investors investing in Morningstar Managed Portfolios, click below to access the latest performance snapshot, market commentary and market performance summary:
Morningstar SA Managed Portfolios Morningstar Global Managed Portfolios (USD) Market Commentary - SA and Global Market Performance Summary - SA and Global
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On Friday 24 February, the Financial Action Task Force (FATF) announced its decision to greylist South Africa. The decision has had both a reputational as well as economic impact on the country. With this said, the true impact of the news will only be revealed with time. Background In October 2021, the Financial Action Task Force (FATF), a global money laundering and terrorist financing watchdog, identified key weaknesses in some of South Africa’s financial regulations. South Africa was subsequently allowed to address these weaknesses and report back to the FATF as to how these weaknesses would be addressed (within roughly 12 months). For our investors investing in Morningstar Managed Portfolios, click below to access the latest performance snapshot, market commentary and market performance summary:
Morningstar SA Managed Portfolios Morningstar Global Managed Portfolios (USD) Market Commentary - SA and Global Market Performance Summary - SA and Global Just as we thought Covid-19 was behind us, 2022 bombarded us with an array of new curve balls. From the war in Ukraine, inflation last seen in the 70s, rising interest rates and global markets experiencing drawdowns that rank as one of the worst on record, investors had very little (if any) place to hide. It almost feels like there’s a new headline about a new disaster happening somewhere around the world every day and quite frankly, it’s rather depressing. In the words of Peter Lynch, “You can’t see the future through a rearview mirror.” Imagine having to drive your car up a steep hill, with numerous bends and turns, not looking through your windshield and only being guided by the view in your rearview mirror – it’s a pretty terrifying thought. Given that we drive by looking out the windscreen and not by looking in the rearview mirror, I want to change how we are looking at this crisis. For our investors investing in Morningstar Managed Portfolios, click below to access the latest performance snapshot, market commentary and market performance summary: Morningstar SA Managed Portfolios Morningstar Global Managed Portfolios (USD) SA Q1 Portfolio Commentary Global Q1 Portfolio Commentary Market Commentary - SA and Global Market Performance Summary - SA and Global Source: Morningstar In partnership with Morningstar: Whether it is via a credit card, personal loan, or a home loan, most investors have experience with interest rates. When it comes to bonds and the impact of interest rate increases on investment portfolios, investors are often left scratching their heads. Bonds are used within investment portfolios to provide income, reduce risk, for growth, or for diversification purposes. However, as most central banks globally prepare to raise interest rates to stave off increasing inflation, some worry about the effects of these interest rate hikes on their investment portfolio. Market and Economic summary In March both market and news headlines were dominated by the war in Ukraine. Developed markets were quick to introduce sanctions against Russia and individuals linked to Putin. During the month, markets tried to digest the impact that sanctions would have on both companies and economies worldwide. Most market participants questioned the impact that higher commodity prices (oil and wheat in particular) would have on inflation as well as global growth expectations. The next point to ponder was how central banks would react to the changing landscape. Global equity markets remained volatile and ebbed and flowed on the news being reported from Ukraine. The US Federal Reserve (Fed) approved a 0.25% rate hike - the first increase since December 2018. Fed officials also signalled an aggressive interest rate hiking path ahead in a bid to control inflation expectations. |
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January 2025
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