Year in Review & November 2022 Update
F&A Monthly Update | NovemBER 2022
What an incredible year 2022 has been! Inflation running, interest rate pumping, Ukraine invading, KZN flooding, lockdown ending, markets shaking, time for leaving, on holiday that is. Each person I chat with is weary after a year where many of us were able to really stretch our legs once again for the first time in a few years!
I am excited, really, genuinely excited for what 2023 holds. Before that, I am excited to rest, read a book, spend time with the family, play some sport, and sleep. Some years require you to stretch yourself and this has been one of those for me. I pride myself on being able to handle severe pressure, on taking on big and complex projects and I know that this was a fundamental year for me personally.
Beyond just me, F&A has taken huge strides forwards. We have done meaningful foundation building work behind the scenes to set us up to solve our vision of being Life Changing. We believe world class, unbiased, professional advice can help others progress, and - done properly - can have a life-changing ripple effect on each other, our community and eventually the world.
I am exceptionally lucky to have an incredible team working towards delivering on this vision. Some necessary thanks to my wife Andrea for her consistent love and support, she is this remarkable force, much like a river, that just doesn’t stop arriving every day to cut some rock and deliver life to us all. Candice, who shares many of the same loving and consistent qualities, and touches so many lives on a daily basis. Branden and Ruth, for your courage in taking the leap, aligning intimately with the above vision and carrying yourselves with integrity, I look forward to us walking together on this journey! Audrey and Rachelle, thank you for your support and care too! Rippling out further, our extended support specialists, too many to be named and thanked individually, have been unyielding in their support of our vision, and clients too.
The past 3 years have thrown excessive volatility on the market front, with this year being a great example of that. Alongside several other social and political events, one could be forgiven for not enjoying the ride of late! A huge credit to the 99% of our clients that remained invested through this trying time, even with several trying moments. We know how much it stings to watch investments bounce, but to stay invested through this requires courage and discipline, and those are two beautiful qualities firmly on display! That exact behaviour, alongside the depth and quality of our teams, and strategies, make a formidable long-term combination that very little should pierce.
November 2022 Update
This month's piece is compiled by Brendan de Jongh, SA Head of Research - PortfolioMetrix.
LOCAL UPDATE
South African (SA) asset classes had a particularly strong month in November comfortably outperforming their global counterparts. SA equities rose by almost 10% whilst global equities remained relatively flat in rands. The rand staged a strong comeback strengthening from over R18 to the US dollar to R17 as at the end of the month. This negatively affected the rand returns of global asset classes. The local equity market was driven by strong performance in the resources sector and a particularly good month for the Naspers / Prosus stable as China stocks rallied significantly.
GLOBAL UPDATE
November saw markets breathe a sigh of relief. Major developed market central banks delivered large interest rate hikes as expected, but there were definite signs that inflation was moderating leading to hopes that the pace and size of these hikes will soon slow. This was especially true in the US where inflation continued to surprise to the downside. Better news on the inflation front resulted in a strong performance across equity and bond markets alike. There were also tentative signs of China beginning to relax its strict stance on COVID, which boosted Asian markets.