Blog

On Thursday, the Bank of England, implemented a 50 basis point interest rate hike (pushing the lending rate to 5%), surprising markets that had priced in a 60% chance of a 25 bps hike. Following the decision, markets saw a nearly 50% chance that Bank Rate would peak at 6.25% by the end of this […]

On Thursday, the S&P500 index experienced a significant development as it entered a bull market. The broad equities benchmark demonstrated a 0.6% increase, concluding the day at 4,292.93 points. This surge represents a notable 20% leap from its lowest point on October 12, 2022, when it stood at 3,577.03 points. Investors reacted favourably to indications […]

Almost half-way through 2023 and the month of May has witnessed an interesting mix of news across global markets with the U.S. agreeing on an in-principle deal to increase its debt ceiling, Germany slipping into recession, high volatility seen in gold and crude oil prices, as well as the local Rand hitting record lows against […]

This week marked the end of May, with the S&P 500 reaching its highest level since mid-August 2022 and the Nasdaq Composite hitting its best level since mid-April 2022. The agreement reached between the White House and Republican congressional leaders to raise the federal debt limit and avoid a default did not significantly impact investor […]

President Joe Biden, House Speaker Kevin McCarthy and their negotiators reached a tentative agreement to raise the debt ceiling on Saturday evening, ending a months-long stalemate. President Joe Biden described the agreement as a “compromise”, while House Speaker Kevin McCarthy said it “has historic reductions in spending”. Republicans have been seeking spending cuts in areas […]

Market concern eased late in the week, with investors less worried that the U.S. Department of the Treasury will default on its debt in early June. On Thursday, investors were buoyed by comments from Speaker of the House of Representatives Kevin McCarthy, who said he hopes to have legislation raising the debt cap on the […]

Following a report released by the Labor Department on Wednesday, the U.S. consumer price index (CPI), a widely recognized measure of inflation that assesses the cost of a diverse range of goods and services, showed a monthly increase of 0.4%. This figure aligns with the estimated value provided by Dow Jones. On an annual basis, […]

The week was marked by volatility in U.S. regional banks after California-based First Republic Bank failed and was taken over by regulators. The subsector of regional banks in the S&P 500 experienced significant volatility amid concerns about potential bank failures and the credit pressures that could arise if the economy slows and unemployment increases. Despite […]

The first quarter of 2023 has been marked by significant uncertainty and market volatility as investors considered the course of inflation, the direction of central bank interest rates, the stability and integrity of financial systems, as well as. the strength of corporate revenues and earnings in a weakening macro-economic environment. While investors didn’t suddenly get clarity on […]

One should realise that current uncertainty and economic headwinds are a global phenomenon and the secret to any investment success is not about 'timing the market' but rather 'time in the market' and a healthy broad-based exposure. It is hard not to let emotion influence your thinking about your own country and as South Africans, […]