By Staff Writer
We still favour select ‘SA Inc’ counters – companies that are geared to domestic economic activity – and we have a healthy allocation to South African banks.
We prefer to take risk in equities over credit in the inflationary backdrop because we expect real – or inflation-adjusted – yields to stay historically low.
PSG Wealth CIO, Adriaan Pask, projects that a rotation from growth to value is a very real possibility given the current context of volatility in both local and offshore markets.
BlackRock prefers to take risk in DM equities against the inflationary backdrop of negative real bond yields.
US inflation reaches new 40-year high.
After two years of global interest rates hovering at record lows, the accommodative environment is coming to an end.
When asked about investing in a 60-month (or five-year) fixed deposit account, Portfolio Manager and Strategist at PSG Wealth, Schalk Louw advises that you need to look at where you are with the interest rate.
We remain overweight TIPS and stay modestly overweight Chinese assets, and we like CGBs in particular for both returns and diversification.
Q4 2021 real GDP growth, at 1.2% (q-on-q, seasonally adjusted) and 4.9% for the year, was in line with consensus expectations and so should have limited implications for the market.
For now, PPS Investments continues to view South African growth assets as being relatively cheap, being priced to deliver good returns going forward.
PwC’s annual Africa Capital Markets Watch report shows that African markets have continued with a modest recovery through 2021.
As all eyes are focused on the Russian-Ukraine war, other events are taking a back seat for the time being.
