Igennix Financial Services CC

14/02/2025

Here are the key highlights from the February 2025 newsletter:

Trump’s First Moves Shake Global Markets
Donald Trump took office on January 20, 2025, and signed 36 executive orders in his first week.
Major policies include trade tariffs (25% on Mexico & Canada, 10% on China, additional threats to the EU), energy expansion, and border security, declaring a National Emergency at the US-Mexico border.
The US Federal Reserve kept interest rates unchanged at 4.25%-4.5%, despite Trump's calls for lower borrowing costs.


AI Disruption – DeepSeek’s Breakthrough
Chinese AI firm DeepSeek launched its R1 model, disrupting global tech markets.
The model's cost-efficient approach questions whether US tech firms have overspent on AI infrastructure.
Speculation arises that companies like NVIDIA and cloud providers may scale back AI investments.


Middle East – Ceasefire in Gaza
A temporary ceasefire between Israel and Hamas started on January 19, 2025.
The deal includes a six-week truce, hostage-for-prisoner exchanges, and potential full withdrawal of Israeli forces from Gaza.
Reconstruction is expected to take three to five years.


South Africa – Economic & Political Developments
Inflation steady at 3% in December, marking the lowest annual inflation average since 2020.
The South African Reserve Bank cut interest rates by 25 basis points to 7.5%, with another cut to 7.25% expected by mid-year.
President Cyril Ramaphosa signed the Expropriation Bill into law, allowing for land expropriation without compensation.
Trump and members of the GNU criticized the bill, warning of potential funding cuts to South Africa, which relies on US support for HIV/AIDS programs.

17/01/2025

Here are the key highlights from the January 2025 newsletter:



Strong Market Performance in 2024

Global developed market equities (MSCI World Index) returned 19.2% in USD, while emerging markets (MSCI EM Index) achieved 8.1%.
South African equity markets (FTSE/JSE All Share Index) rose by 13.4% in ZAR, and local bonds delivered an exceptional 17.2% return.
The rand ended 2024 as one of the top five best-performing emerging market currencies.


Key Investment Themes for 2025

Global Growth: Continued expansion driven by accommodative monetary policies and President Trump's pro-growth agenda, including tax cuts and deregulation.
Market Risks: Despite optimism, high valuations could lead to corrections in US and global equities.
South Africa: Market recovery following the formation of the Government of National Unity (GNU), with positive expectations around reduced loadshedding and declining interest rates.


Geopolitical Factors

Anticipation of Trump 2.0 policies on tariffs, tax cuts, and immigration, with a potential risk of higher inflation and market volatility.
The Ukraine war and international trade policies could further influence market performance.


Fixed Income and Bonds

Global bond yields are expected to rise, leading to an underweight stance on duration and a preference for shorter-term fixed income instruments.
South African bonds continue to offer attractive real yields, exceeding 6% after inflation.


Currency Outlook

The rand’s strength is supported by economic reforms, declining inflation, and positive seasonality.
Sustained volatility across markets presents opportunities for investors to capture alpha.

13/12/2024

13/12/2024

Here is a brief overview of key highlights from our December 2024 Economic Newsletter:

Global Markets End the Year on a High
- S&P 500 achieved its 52nd record high of 2024, with a 26.5% year-to-date gain.
- Strong earnings growth: Q3 earnings up 5.8%, with Q4 projected to rise by 12%.
- Broader growth: Global MSCI ACWI index up 20.8% YTD in USD, local equities up 13.8%, and local bonds yielding 17.6%.


Trump 2.0 Prepares for Tariffs
- Plans for 25% tariffs on imports from Canada and Mexico and 10% on China, targeting U.S. trade partners.
- Staunch opposition to any BRICS currency formation, threatening 100% tariffs on BRICS nations if they move away from the U.S. dollar.


Positive Developments in South Africa
- South African Reserve Bank (SARB) reduced its repo rate by 25 basis points to 7.75%, citing lower inflation (2.8% in October).
- International rating agency S&P Global upgraded South Africa’s outlook from stable to positive, reflecting optimism over reforms and economic growth.

09/12/2019

At Igennix Financial Services, we thrive at empowering youth. All our staff have started in the insurance industry with no previous industry experience, and more than 60% of them are 25 years of age or under. The exuberance of their youth as well as their commitment to our course, has allowed our business to thrive in the last 12 months despite our poor economic environment. In order to facilitate further growth, we are offering an opportunity to new interns and learners for 2020. Learners should have a minimum of Matric, and interns should have at least a 3-year qualification. Salary ranges from R4000 to R6500 pm. Please forward CV’s to [email protected]. We are based in Southern Suburbs, Cape Town, and only applicants in the surrounding area will be considered.

06/09/2019

At the end of an exciting roadshow in Polokwane. Not only have we assisted 8 specialists collectively to save more than R1m in annual premiums, but we've also educated them about the types of cover best suited to their practices. They were ecstatic. It feels great that we were able to make a real difference!

07/03/2019

Ever wonder why your vehicle premium increase but the vehicle value depreciates?

Here's a simple answer to it.

21/02/2019

Read up on the latest update on the 2019 budget speech.

Finance minister focuses on restoring the country's credibility and overall economic growth.

What is your thoughts on this?

Finance Minister Tito Mboweni’s maiden Budget Speech didn’t deliver any major punches such as 2018’s surprise 1% VAT hike, but instead sought to acknowledge the tough economic situation facing taxpayers and restore confidence in the credibility of the South African Revenue Service (SARS).