December 2023 Update
F&A Monthly Update | DECEMBER 2023
I had the privilege of dropping and collecting my son and some of his teammates from the Westville Boys (WBHS) rugby camp in Margate these past few days. WBHS has a talented group of u19 boys (opens) with numerous provincial players, and the first thing that struck me was just how athletic they all were! From fast, to strong, to tall, to wide, they were all there. Beyond that, and completely evident was how diverse the team was, boys of different race, creed, and culture coming together from all around the country! Fed with regular updates, pics, and videos from the coaching staff, you could sense the pure energy and commitment from the group; I loved it!
They don’t see differences like older generations of South Africans do. You can see it in how they greet each other, dapping (a type of handshake that makes a clap, the louder the better) each other up with a smile and a half hug. They see a teammate, someone they are friends with, training with, encouraging, and are preparing to go into battle with. Importantly, they weren’t constantly reminded of their differences, but rather brought together in friendship, with a joint goal. It is special, and inspiring!
It is a shining example of the solution this country will receive once we can each see past the repeated divisive messaging. This message, this poisoned propaganda, is engineered to stoke past hate and hurt. We need to see this! We need to see past this. We need to address it in each conversation; each interaction. To heal this, we must all look deep inside, and put down this ignorant hate and bring love into ourselves, and then into each moment we spend with our fellow countrymen. South Africans are, without a doubt, some of the friendliest people on earth. We need to see this and capitalise on it!
I raise this well-beat drum intentionally. 2024 is an important year for us all, with national elections and the messaging around it likely to be the opposite of what I encourage. Many South Africans are so despondent, they talk of not even voting. This loss of hope is the absolute worst-case scenario! But there is hope!!
My hope, through this heartfelt message is that a seed may be planted in your heart. One that will soften what needs softening, and guide you to making new friends, and having new conversations. Ones of hope, and togetherness. Ones of working together to pull us all forwards, rather than divide. I believe each of us has the duty to do this!
And once we are friends, I encourage you, in your capacity, to start rebuilding and repairing our hurt country with a conversation about the upcoming elections, and the importance of us all voting. We all need to vote! Those abroad need to vote. Those in positions of influence need to have chats and meetings with their teams around this topic of unity, and the responsibility for us to each vote. This message needs to be multiplied out, and it can start with you!
Despite the media, there is hope. But hope alone won’t fix anything. Look inside yourself and ask yourself what action you are going to intentionally take. Whatever it may be, do it with sincere love. ♥️
Sending love
Richard and the F&A team
December 2023 Update
This month's piece is compiled by Brendan de Jongh, SA Head of Research - PortfolioMetrix.
GLOBAL UPDATE
The last month of the year saw a ‘Santa rally’ across markets as investors became increasingly certain of forthcoming interest rate cuts. Three of the major developed economic areas (UK, US and euro area) all had positive news on this front, either lower than expected inflation numbers, or central banks signaling the end of the rate hiking cycle and the green shoots of monetary policy easing on the horizon. This provided a boost to asset prices across developed and emerging markets with bond yields falling, and thus bond prices rising, in anticipation of lower interest rates. Equities were buoyed by lower expected funding costs and a further uplift in positive sentiment.
LOCAL UPDATE
South African markets enjoyed a strong finish to the year benefitting from the positive investor sentiment globally. Local property had a particularly good month falling just short of double digit returns for the month followed closely by global property. Local equity and local bonds both outperformed global equities in rands which was negatively affected by a generally stronger ZAR. The local equity market was driven by financials and smaller cap companies (mid and small caps).
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