MARKETS IN A NUTSHELL — FOR SEPTEMBER 2023

In our monthly podcast, ‘Markets in a nutshell’, Linda Eedes discusses what’s happened in global markets and economies over the past month, how we see things playing out and how Foord is positioned as a result.

MARKETS IN A NUTSHELL — FOR SEPTEMBER 2023

As autumn descended on the Northern Hemisphere, it brought with it a chill on Wall Street. Global equity and bond markets both sold off sharply — September was the worst month for the US S&P500 Index this year. US stocks have now fallen more than 7% since their July peaks. As with the rally earlier this year, the selloff was valuation and not earnings driven — a stark reminder that thematic rallies are vulnerable to rapid reversals.

MARKETS IN A NUTSHELL — AUGUST 2023

After July’s rallies, global equity and bond markets took a U-turn in August. Developed economies find themselves in a tug-of-war between growth and inflation. In the US, upbeat economic data and hawkish comments from US Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium have put expectations of early Fed rate cuts for next year in question.

MARKETS IN A NUTSHELL PODCAST — AUGUST 2023

In our monthly podcast, ‘Markets in a nutshell’, Linda Eedes discusses what’s happened in global and South African markets and economies over the past month, how we see things playing out and how Foord is positioned as a result.

The Threat of Fiscal Dominance in the US and Implications for Investors

After a double whammy of negative returns for both equity and bond investors in 2022, many investors anticipating a US recession this year thought 2023 may turn out to be the Year of the Bond. But in stark contrast, the US stock market has rallied strongly, and US bond investors are staring at losses over the year to date. Long-dated yields having surged, with the 10-year yield moving to its highest level since 2007 and the 30-year yield to its highest level since 2011, with bond prices falling in turn. The reason most widely quoted for this is the US economy’s surprising resilience in the face of Fed rate hikes of more than 5 percentage points over the past 18 months. But behind the higher-for-longer story, there is another probable cause for sagging US long bonds: a surge of long-dated Treasury issuance needed to plug federal deficits, and the continued deterioration of the US debt trajectory.

Markets in a Nutshell — July 2023

Risk assets rallied again in July, adding to the robust gains achieved in the first half of the year. Early investor worries over everything from US bank failures to global recessions have seemingly faded. We are now seeing a transition from fear back to greed — fuelled by resilient US economic data, slowing headline inflation globally and the enthusiastic buzz around artificial intelligence. Returns were positive across most asset classes and geographies. In a reversal of fortunes, emerging market equities dramatically outperformed their developed market peers in the month.

Markets in a Nutshell podcast — July 2023

In our monthly podcast, ‘Markets in a nutshell’, Linda Eedes discusses what’s happened in global and South African markets and economies over the past month, how we see things playing out and how Foord is positioned as a result.

Are There Opportunities in SA Inc. Stocks?

As fund managers, we are always on the lookout for opportunities that can generate good returns. This is true even — or perhaps especially — when sentiment is at its worst. An area of the local market that has received a lot of attention lately for its historical cheapness are ‘SA Inc.’ stocks. Portfolio manager NANCY HOSSACK takes a closer look at prospects for this segment.

Markets In A Nutshell