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We look at some of the drivers behind the recent weakening of the rand and touch on separating emotion from investment decisions, especially in times of sharp currency movements

For the 10th time in 14 months, the Fed raised rates by 25 bps to 5%–5.25% to fight inflation. Growth is highest since 2007. BBC News reports, “Higher rates have sharply raised borrowing costs, spurring a slowdown in sectors like housing, and playing a role in the recent failures of three US banks.”

The rand plummeted early in May when the US ambassador accused South Africa of exporting weapons and ammunition to Russia. The repo rate hike rattled the currency again later in the month. The currency plunged 26% last year and 8% from 11 May to 25 May. The SARB’s Monetary Policy Committee raised the repo rate 50 bps to 8.25%, the 10th consecutive increase.

While the urgency of the environmental, social and governance issues facing our world necessitates immediate action, it is also necessary to recognise that the path to mobilising the ability of the hedge fund industry to positively influence the world is a long and complex one. We have only just begun the process and look forward to the opportunities that lie ahead.

Research has shown that during short-term market movements, investors tend to panic and forget about the ultimate reward of a long-term investment. This article uses examples to highlight the importance of remaining invested for the longer term for achievable returns.

April was a volatile month for global markets, as major stock indexes struggled to find direction but ultimately ended the month with gains. The positive market sentiment was driven by recent data indicating a clear slowdown in inflationary pressures in the US, which alleviated concerns that the Federal Reserve would continue its aggressive interest rate hikes. However, uncertainties surrounding…

The Rand has recently faced a series of negative shocks, pushing it to its lowest level since the COVID-19 pandemic began. Factors such as higher global interest rates, a decline in the terms of trade, grey-listing by the Financial Action Task Force (FATF), concerns about the US debt ceiling, and ongoing electricity load-shedding have all contributed to this situation.

Furthermore, the South African growth outlook has been discouraging, with a high possibility of little to no economic growth.

The growth outlook for South Africa looks bleak, with a possibility of no growth in 2023. According to an index that tracks interbank payments, South Africa’s economy has probably entered a technical recession. Consumers are still under financial strain as food inflation peaked at 14.4% in April 2023.

The volatile start to 2023 is once again a good example of why it is critical to focus on downside protection to reduce sequence risk for post-retirement investors.