Jacques De Kock

As we enter the final quarter of 2025, the investment team remains cautiously optimistic yet firmly anchored in a defensive stance. 

Global equity markets are buoyed by persistent US exceptionalism, strong corporate earnings and resilient consumer demand, but narrow market breadth and elevated valuations raise concerns. 

A weakening US dollar is emerging as a structural trend, supporting commodities and offering tailwinds for emerging markets, particularly China and resource-linked economies. At the same time, volatility from tariffs, geopolitical flashpoints and shifting central bank policies underscores the need for agility. 

Within South Africa, political uncertainty persists but resource stocks and global-exposed companies continue to underpin local equity performance. 

The team favours a barbell strategy: maintaining exposure to global growth drivers like AI and technology, while balancing with commodities, gold and selective EM value. Elevated cash levels and short-dated bonds provide flexibility to capture opportunities as market pullbacks or policy shifts unfold.

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