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Balanced fund portfolios offer protection against market volatility

17 February 2016 | General

Multi-asset or balanced funds can offer a measure of protection against market volatility, which is expected to continue as long as factors such as uncertainty over a possible investment rating downgrade for South Africa, unpredictable Chinese markets and question-marks over the timing of the next interest rate hike from the US Federal Reserve continue to impact on global economic jitters.

Inflation: Dead, or just forgotten?

15 February 2016 | Economy

The US and global economies are six years into their post-global financial crisis (GFC) recoveries, and growth has proved resilient to a number of shocks. Yet a widespread and deep-seated pessimism continues to characterize the economic debate and financial market dynamics. The Secular Stagnation hypothesis recently revived by a former US Treasury Secretary and many others perhaps best encapsulates this pessimism. In a nutshell, Secular Stagnation posits that the global economy suffers from a structural lack of aggregate demand and a chronic excess of desired savings over desired investment; this results in permanently low levels of economic growth, inflation and interest rates. Indeed, a number of economists and commentators have repeatedly raised the fear that the global economy might fall into stagnation and/or deflation.

European banks add to market fears

15 February 2016 | General

The sell-off on global markets intensified last week. Along with the existing trio of concerns - oil, the Federal Reserve and China – investors now also have to contend with slumping European bank shares and the relentless march of negative interest rates.