Jonel Matthee Ferreira

Market volatility remains elevated, particularly in the US, where policy uncertainty and geopolitical risks continue to weigh on sentiment. However, economic fundamentals remain solid, with strong job growth and corporate earnings. 

The AI-driven tech sector remains a key growth driver, though stretched valuations warrant caution. Elsewhere, we see opportunities in selective European equities, supported by fiscal expansion and Japanese equities, where a brighter economic outlook and corporate reforms are driving improved earnings and shareholder returns. 

We remain cautious on emerging markets due to mixed growth prospects and tariff concerns. With US Treasuries losing some of their diversification benefits, we favour gold as a hedge.

Locally, South African bonds continue to offer value, while South African equities present upside potential given relatively attractive valuations and an improving outlook on economic growth. Despite this, there remain areas of weakness, particularly in wages and unemployment.

Overall, we are overweight global assets, favour South African bonds, and hold a neutral position on South African equities.