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.

  • 27th June 2022
  • By 27four Investment Managers
  • Featured

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.

An overview of South Africa’s Green Finance Taxonomy

In 2020, National Treasury published a document entitled “Financing a Sustainable Economy”. This initiative was aimed at encouraging available capital in South Africa to be focused on investment that not only boosted socio-economic development, but also fostered climate-resilient growth. 

  • 20th May 2022
  • By 27four Investment Managers
  • Featured

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.

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.

COP26 Implications for South Africa

COP26 (the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change) took place in Glasgow, United Kingdom, in November 2021.

  • 7th January 2022
  • By 27four Investment Managers
  • Featured

Monthly financial markets outlook | November 2021

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.