Trade wars, growth and who can spot the $1.2 trillion elephant in the room

While underlying company and macroeconomic fundamentals continue to remain solid and improve quarter on quarter, political headlines continue to impact sentiment and drive equity market direction globally. Markets have been volatile and this has affected all emerging markets and the JSE. Sector rotation in the local equity market is gaining momentum as expected given improving sentiment but a strong local currency and ongoing concerns around governance in select companies continue to cloud the local equity outlook. Concomitantly, local economic data continues to appear to make a move in the right direction after almost a decade of stagnation but the impacts of a strong Rand are somewhat conflicting for various sectors of the economy. Subsequent to the worst quarter for local equity markets in 7 years we look to unpack the risks, analyse the headlines and talk to where we are finding opportunity.