Drew Rydell

We are feeling cautious on global equities and are being selective in our stock picking in favour of geographies that are still offering value and stocks with lower valuations. While we are not anticipating a market correction, we are less bullish than previously due to higher valuations in general. The US is the market we are most cautious on and are underweight most of the large tech stocks. Locally we are positive on the fundamentals in South Africa and expect more favourable conditions for SA stocks. We feel comfortable with SA and emerging market bonds and less so with developed market bonds. We expect interest rates to continue to fall, but at a slow pace. We are still not invested in property and don’t see that changing soon. We prefer gold miners to physical gold and have invested in some higher quality stocks when possible.

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