InvestLife

21/01/2025

🌍 Global Market Update - January 2025

💰 Rate Cuts Slow Down: The US Fed, ECB, and SARB trimmed rates by 25 bps each, but hopes for further cuts are dimming due to sticky inflation.

📈 US Dollar Strength: The dollar surged 7.7% (DXY index), hammering emerging market currencies. The South African rand tumbled 9.7%.

📉 Equity Pressure: Emerging markets dipped on weak commodity demand and trade concerns, while US equities gained on election optimism, slowing in December.

06/11/2024

Trump's victory at the polls means a a big shift in sentiment for the markets. Expect volatility, but history shows that election outcomes often have less of an impact on markets than we assume.

However, with Trump’s policies favouring a rising dollar, it’s wise to maintain some offshore exposure to mitigate currency risk. That said, there’s no need for knee-jerk reactions—position your portfolio with flexibility for all scenarios. Stay diversified, and use this uncertain period as an opportunity to balance risk and take advantage of global market trends.

Always speak to a qualified financial adviser, as each individual’s circumstances and needs are unique.

South Africa’s rand is in volatile territory, seeing some big swings as markets take in the results of the 2024 US election—which shows an early lead for Donald Trump.

07/10/2024

🌍 Global Market Update - September 2024

Interest Rate Cuts: Central banks in SA and the U.S. reduced rates by 25 & 50 bps respectively—the first since the pandemic.

Equity Market Volatility: August saw global equities drop sharply (MSCI World down 10.06%), but most indices ended the month higher.

Bond Market Stability: Bonds continued to shine, with many ranking in the top 5% for yields over the past decade.

South Africa's Strong Performance: 🇿🇦 The Rand ranks 3rd best among EM currencies, SA bonds lead emerging market returns, and the JSE is the best-performing exchange in USD terms for 2024.

Read the full analysis here.

A look at how markets performed over the the quarter, and an outlook on the next.

12/08/2024

🌟 Empowering Young Minds! 🚴‍♀️ 🌟

At InvestLife Advisory Services, we’re dedicated to making a positive impact in our community. We recently donated a bicycle to Boipelo, a schoolgirl from Sefutswelo High School, through the Qhubeka charity. This bike will provide her with a reliable way to commute to school and back.

By supporting her journey to education, we hope to open doors to a brighter future. Together, we can make a difference!

08/08/2024

💼 𝗧𝗵𝗲 𝗧𝘄𝗼 𝗣𝗼𝘁 𝗦𝘆𝘀𝘁𝗲𝗺: 𝗛𝗼𝘄 𝗗𝗼𝗲𝘀 𝗧𝗵𝗶𝘀 𝗔𝗳𝗳𝗲𝗰𝘁 𝗬𝗼𝘂𝗿 𝗥𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁? 💼

Starting September 1, 2024, the new Two Pot system will reshape how your retirement funds are managed. Here's how it works:

🔓 Access Funds: You could potentially withdraw R30,000 or 10% of your current value from your contributions made up to September 1. Note that any withdrawals will be added to your income and taxed accordingly.

🏦 Two Pots:

Savings Pot: One-third of future contributions will go here, accessible for your needs.
Retirement Pot: Two-thirds will be preserved until retirement.
Stay informed and plan accordingly to make the most of this new system!

Note: This change is subject to retirement fund rules approved by the Financial Sector Conduct Authority (FSCA), and as halfway through July, only 647 of over 5,000 funds had updated their rules.

Stay informed and plan accordingly!

Caroline Naylor-Renn from 10X explains the two-pot retirement system – how it will work and the purpose of the savings pot.

05/08/2024

🌍 𝗗𝗼𝗹𝗹𝗮𝗿 𝘃𝘀. 𝗥𝗮𝗻𝗱: 𝗪𝗵𝗮𝘁 𝗬𝗼𝘂 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄 🌍

The rand has shown strong gains against the dollar in recent months, but this short-term trend isn't expected to last. The dollar is rallying, reaching R18.50 from R18.27 just last week. 📈

With the shift towards safe-haven assets and a risk-off environment boosting the dollar, now might be a wise time to consider converting to offshore currency.

The rand took a significant hit on Monday as markets await the US Fed’s next rate move and tensions in the Middle East give investors the jitters.

19/06/2024

How Does Psychology Shape Your Investment Choices?

The brain handles an astounding 35,000 decisions daily, but only 5% of these decisions are made through logical processes.

For the other 95%, we use intuitive thinking & heuristics - mental shortcuts that can often lead to cognitive biases. These biases inevitably manifest within the sphere of investing.

04/06/2024

🌍 Why Local Bias Could Be Costing You: The Case for Global Investment Diversification 🌍

Your neighbors are moving overseas, while you've installed solar panels to beat load shedding. But what can you do to avoid below-average growth on your investments?

Local investments continue to be outperformed by the global market. Over the past five years, the global equities has outperformed the South African equity market, offering higher returns and growth potential. 📈

Protect and grow your wealth by exploring global markets. 🌍

🔗 Read our latest article to learn more about the benefits of thinking beyond local investments and securing your financial future.

20/11/2023

An actively managed, conservative global fixed income solution that offers attractive US dollar cash-plus returns for limited additional risk aimed at conservative investors looking to diversify into a low-risk global income fund that targets Us dollar cash-plus returns from a diversified portfolio of actively managed global income-generating fixed interest assets OR used as a building block within a balanced portfolio.

An actively managed, conservative global fixed income solution that offers attractive US dollar cash-plus returns for limited additional risk aimed at conservative investors looking to diversify into a low-risk global income fund that targets Us dollar cash-plus returns from a diversified portfolio....

09/11/2023

While it's undeniable that Mauritius has established a conducive business environment that has attracted investments and fostered economic growth, it's crucial not to overlook the value of diversification in investment portfolios. As a South African financial advisor living in Mauritius, I encourage investors to consider a balanced approach to wealth preservation and growth. The South African news headlines often focus on challenges but the truth is the global economy is facing challenges too. South Africa remains a wonderful place to live, work, and prosper, with opportunities for those who navigate it wisely.

Mauritius has a much higher GDP per capita than South Africa, highlighting the benefits of favourable business policies and low taxes.