Monthly financial markets outlook | June 2022
Markets continued to be volatile in May with investors now more concerned about potential spill over of financial risks to the real economy. Grim earnings reports and guidance from some consumer-related companies in the US alongside a slump in business and consumer confidence raised recession and stagflation concerns. Locally, political risks were also elevated following corruption allegations levelled against the president. However, despite a negative backdrop, major asset classes closed almost unchanged in May, thanks to the relief rally towards the end of the month.
Monthly financial markets outlook | May 2022
The painful retrenchment across major asset classes which commenced at the beginning of the year accelerated in April with some segments giving up all their post-Covid gains. Fears of entrenched inflation, tightening financial conditions, the Ukraine war and slowing growth were once again the dominant themes. The Chinese Communist Party’s (CPP) decision to seal off some Chinese provinces with key industrial hubs in its attempt to combat rising Covid-19 infections also sent shivers across the market, with investors worrying about a potential dent on an already fragile global growth outlook. Correlations between risk assets and safe assets remained elevated which means that even a well-balanced portfolio cratered this month.
Quarterly style analysis | March 2022
If COVID over the past 2 years wasn’t enough, the first quarter of 2022 has seen a major European conflict,...
Reserve your seat at the ABSIP Asset Owners Symposium
We look forward to hosting the Johannesburg leg of the ABSIP Asset Owners Symposium from 4-6 May 2022. The symposium is a platform for Pension and Retirement Fund Principals and Trustees, Chief Investment Officers, Asset Consultants and Asset Management firms to discuss relevant issues pertaining to diversity and inclusion in the sector.
Monthly financial markets outlook | April 2022
Financial markets experienced a sharp pullback during the first quarter as inflation, recession and the spectre for higher policy interest rates took centre stage. The Russia and Ukraine friction in late February somewhat exacerbated risks faced by investors.
SAVCA Conference 2022
27four is a sponsor of the SAVCA Private Equity Conference 2022. The Conference returns to the Western Cape on the…
Monthly financial markets outlook | February 2022
Global risk assets bounced back strongly in October with the MSCI ACWI gaining 5.1% led by US large caps (+7%) and developed markets growth stocks (+6.7%) in dollars. Tech stocks that had come under pressure on news of policy normalisation performed exceptionally well buoyed by strong third-quarter earnings. More than 83% of tech companies that had reported their earnings at the end of October outperformed expectations.
