September 2023 Update
F&A Monthly Update | SEPTEMBER 2023
We hope you're in good spirits. As part of our ongoing commitment to keeping you informed, it's time for another monthly update!
These updates offer a brief look into the market insights from PortfolioMetrix, providing you with an overview of where your investments are headed.
Here's your September 2023 update!
Sending love
Richard and the F&A team
September 2023 Update
This month's piece is compiled by Brendan de Jongh, SA Head of Research - PortfolioMetrix.
GLOBAL UPDATE
September saw a pause in developed market central bank rate hikes, but also higher longer-term bond yields as investors priced in longer delays before rate cuts began. Bond prices consequently fell over the month, particularly in the US. The ‘higher interest rates for longer’ narrative also hit equities, with most regional markets falling in local currency terms. Oil prices continued to rise as Saudi Arabia and Russia agreed to extend their production cuts to the end of 2023. Greater uncertainty and higher US yields helped the US dollar to appreciate further against most other currencies.
LOCAL UPDATE
Global volatility and weakness reverberated throughout South African markets, resulting in negative returns for local investors across all asset classes except for local cash. The past month proved to be a formidable challenge for investors across various fronts. The adverse performance in domestic and global equity, bonds, and property markets underscores the escalating uncertainty and economic headwinds confronting investors. Heightened inflation concerns and extended higher interest rates in the United States have created a less favourable environment for a small emerging economy like South Africa.