Equities offer promise in 2025 after an eventful close to 2024

--:--
The fourth quarter of 2024 was interesting, Marius Oberholzer, Head of STANLIB’s Multi-Asset team, says. The stand-out event was the sweeping Republican victory in the US presidential election, which is likely to be followed by higher tariffs, corporate tax cuts and deregulation of many industries in the US. Marius believes 2025 offers a fertile environment for investment, due to, among other things, the structural shift of many economies towards services and away from manufacturing, political changes, including in SA, and persistently high interest rates. He discusses the team’s “New Regime” scenario, in which central bankers accept higher inflation to maintain growth, and what this means for equity, fixed income markets and other investment instruments.

Any commentary or forecasts indicated in this document are for information purposes only and not guaranteed to occur. Additional information about products/funds is available on the Minimum Disclosure Document/Factsheets which can be obtained from the website (www.stanlib.com).
3 Feb English South Africa Investing · Business News

Other recent episodes

SARB expects lower SA inflation, while US tariff uncertainty persists

The South African Reserve Bank has cut the repo rate by 25 bps to 7.25%, citing slowing economic growth, says STANLIB Chief Economist Kevin Lings. The bank revised down its estimates of growth and inflation for this year and may announce a new lower inflation target of 2-4%, in line…
2 Jun 9 min

SA’s April inflation remains subdued; US tax bill will push debt higher

SA’s inflation rate for April, at 2.8%, is fairly subdued, partly because prices of goods being imported from China are in deflation. A cut of 25 bps by the SARB later this week would be justified, given both low inflation and low growth forecasts, and would provide welcome stimulus for…
26 May 10 min

Impact of SA's 2025 Budget on fixed income markets

In this podcast, Sylvester Kobo, STANLIB’s Deputy Head of Fixed Income, discusses the implications of the third iteration of the 2025 Budget on the bond market. He highlights how the Budget could affect fixed income investments, particularly in light of lower GDP growth and inflation forecasts. Discover why the bond…
21 May 4 min

Budget 3.0: SA’s slow growth rate keeps the pressure on government finances

Budget 3.0 was in line with expectations, although the small increase in the fuel levy was an unwelcome surprise, says STANLIB Chief Economist, Kevin Lings in this podcast. After discussing some of the detail in the numbers, Kevin warns that the South African government’s fiscal position will remain under pressure…
21 May 13 min

US inflation under control; SA releases disappointing unemployment data

US inflation and consumer sales data for April showed no signs of tariff pressures. US inflation was 2.3%, just above the 2% target, but over the next 12 months tariff hikes will push it up by 1-1.5%, as well as cause a slowdown in growth and higher unemployment levels. In…
19 May 11 min