Watch the video below by Johan Gouws, to gain insights into the trends that have affected the markets and investment landscape since the start of 2021.
Since the start of 2021 the general mood amongst investors has been on the rise as equity markets continue to reach new record highs on the back of a global economic recovery. Declining Covid infection rates, low interest rates, additional fiscal stimulus packages and progress with the rollout of vaccines across many countries all contribute to greater risk appetite amongst investors for growth assets. Locally, the Budget announced on 24 February was well received by the market even though scepticism remains about government’s ability to deliver on key measures in order to arrest South Africa’s fiscal decline. The FTSE/JSE Allshare Index reached new record highs on the back of strong global equity and commodity markets. Attractive real interest rates, improved sentiment, a positive trade balance, and foreign investments saw the Rand continuing to recover and stabilise against the US Dollar. A strong worldwide economic recovery is expected for 2021 off a low base with many areas of the global and local equity markets and the SA bond market still showing promising return opportunities for investors.