Francois Botha

In Q4 we expect the Fed to continue to cut rates in response to a weakening labour market, prioritising employment over tariff-driven inflation. 

In Europe, improved fiscal support reduces downside risks, though growth and inflation remain subdued, limiting the region’s near-term potential. Against this backdrop, we favour US equities, supported by robust earnings growth and a weakening dollar, which enhances global competitiveness. 

We continue to like local equities and bonds – valuations remain attractive for stocks, while bonds are nearing fair value as yields adjust. In contrast, Europe and Japan face currency-driven headwinds that may weigh on returns despite accommodative policy settings.

‍

‍