Jan-Daniël Klopper

We have maintained a moderately overweight position in SA nominal bonds, supported by attractive valuations and some positive policy developments, preferring them over local cash and offshore bonds – although the long-term prognosis for economic growth does not augur well for fiscal sustainability.

We have opted to stay neutral in offshore equities in the wake of rising trade tensions and policy uncertainty. The US sentiment is weakening, with slower retail sales and a bearish business outlook. Globally, the eurozone, the UK and Japan are showing signs of improvement, but US recession risks are rising alongside increased economic and trade policy uncertainty. While potential policy shifts and global recovery could support equities later this year, we prefer to stay neutral for now.