Sometimes I find it incredibly difficult to make sense of this crooked world we live in, and I often hear how perplexed investors are as well. The economy feels a little upside down, every headline seems to have a negative tone, markets are selling off, sentiment is low and there is never a dull moment when it comes to politics. It’s hard to try and make sense of it all, and how this utterly confusing world is impacting your investments and life savings today. I want to challenge you today to invert the status quo, and instead of worrying about everything that you don’t know – refocus and remind yourself of things that you do know. I find great joy in reading nuggets of wisdom from some of the greatest investment minds of our time including Howard Marks, Warren Buffett and Morgan Housel and now is a great opportunity to resurface some of those basic investment principles and remind ourselves that regardless of market cycles these principles remain true. Source: Morningstar
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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 Morningstar's Electric Observer takes an in-depth look at investment opportunities throughout the value chain as EVs and hybrids will be 2 of every 3 autos sold globally by 2030. In 2022, battery electric vehicles represented nearly 10% of global auto sales, up from a little less than 6% in 2021. Much of the growth occurred in China, which has been a leader in EV sales over the past decade. However, with national EV subsidies in China expiring in 2022 and far lower sales in the U.S. and Europe, the market questions if EV sales can continue to grow without subsides. Source: Morningstar
Current market sentiment towards SA government bonds is especially negative. Both local and foreign investors are becoming increasingly concerned about the debt hangover effects and higher borrowing costs arising from continued fiscal slippage on an already bloated balance sheet. Ahead of the 2024 National Election, there is also the potential risk of increased populism affecting more disciplined and pragmatic management of government spending. Source: Morningstar
With equities no longer the only game in town and free money perhaps something of the past, asset allocation has become so much more complicated and a somewhat fascinating puzzle to solve. With the dislocation present in equity markets from a regional as well as sector perspective – where could money be made in the next decade? Because starting yields from fixed income assets today are much higher, could one argue that bonds have more roles to play today than the traditional uncorrelated nature to equities? How do you construct a portfolio to ensure robustness against a world of glaring problems and how do you ensure a real return for clients given much higher inflation these days? Source: Morningstar
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 South African investors have a love-hate relationship with listed property, with significant shifts in sentiment and demand evident over the last 10 years. Before 2017, it was quite common for multi-asset funds to have healthy allocations to the S.A. listed opportunity set mostly due to the appeal of property companies offering relatively stable dividends. The S.A. property market demonstrated strong performance between 2013 and 2017, attracting significant investment flows into the sector, as depicted in the chart below. Source: Morningstar
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January 2025
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