Investments / General

Can Africa reduce the impact of the US Dollar on its Emerging Markets?

Whenever I meet clients and investors, the one discussion I always end up having, regardless of market conditions, is on currency markets. There are often strong views expressed about why domestic policy direction or the price of key tradable goods or services is leading to one’s home currency strengthening or weakening. The discussion we don’t have often enough, though, is the over-sized impact the movements of the US Dollar can cause upon Emerging Market countries and is there any way to reduce this over time. While policy and trade are usually the main drivers of major currencies, I often point out that currencies, and their drivers, are relative, not absolute. Therefore, any discussion of policy or external balances of an economy matters, but primarily in relation to the policy or external balances of the economy’s major trade partners.

Why is it important to diversify your asset classes to keep up with inflation

Global inflation continues to slow, the latest data from the United States showed inflation easing to 6.0%, from 6.4% previously, the slowest pace since September 2021. Weaker global economic activity and easing supply chain pressures should continue to support softer inflation this year.

Beware of your behavioural biases in investing- particularly when you are thousands of kilometres away from your money

Are you doing right by your investment clients?

There are few tougher jobs than managing other people’s money; yet each day, thousands of certified financial planners (CFPs) and financial advisers are called upon to do just that. How you ‘go to bat’ for your clients could make the difference between ending a season in the top decile of the return performance tables for specific risk categories or languishing near the relegation zone. It turns out that doing right by your clients could be far simpler than first assumed. All that is required, according to the team at Satrix Investments, is the right balance of diversification and time-in-the markets. Oh, and a healthy dose of passive investment.