The second quarter of 2023 saw a turnaround for most JSE styles when compared to the dismal underperformance of Q1. Unfortunately, last year’s best, namely Dividend Yield and Value, were left out of the positive reversal. The most notable style performance came from momentum/growth, mid caps, rand hedge and illiquids. The most sensical performance comes from rand hedge shares as the quarter experienced significant shifts in the exchange rate, touching R19 and then falling sub R18 (R17.92 at the time of writing). Given that our reserve bank kept rates on hold and both the ECB and Fed hiked, we may see renewed Rand weakness which would propel rand hedge, momentum and growth. But (and that’s a big but) if inflation cools further and the risk of economic downturn results in interest rates dropping, we could also see the likes of a reversal in value. Enjoy the ride 😊