Although defence companies have performed very well during 2022, outperforming the S&P 500 Index by a wide margin, their valuation metrics still appear attractive, especially considering the potential for healthy long-term revenue and profit growth.

With interest rates rising across the globe, we thought it pertinent to provide some background on the impact of interest rates on the value of investments.

After years of Quantitative Easing and near zero interest rates globally, rising interest rates will lead to some form of normalisation in the behaviour of capital markets.

The era of free money seems to be over and there may be some adjustment needed with regards to expectations for global economic activity and investment returns.

As cyber criminals continuously adapt to the challenges they are faced with when trying to access sensitive information, there will continue to be a need for innovation and development within cybersecurity. Organisations will not be able to afford to go uncovered and investments into their own security will continue. By 2026, the cybersecurity industry is expected to be around USD 345.4 billion. By including cybersecurity as a theme within portfolios, investors stand to benefit from this growth.

We have been writing about inflation since late 2020 and believe it’s safe to say that inflation has become a significant problem facing global financial markets. While inflation is still very much making daily headlines in the financial press globally, the focus is shifting increasingly to the impact on monetary policy, economic activity and financial markets. 

Although climate change is always a hot topic, recent weather patterns have highlighted its impact on the world. The closer we get to Global Day Zero and the more realistic 2012 seems, humanity will be forced to act on then necessary changes. These changes will be permanent and as investors we should position ourselves to benefit from them.

The first half of 2022 was by no means a walk in the park. The global economy, and capital markets in turn, had to face a barrage of shocks. Our central investment theme, “The Return of Inflation”, which we have written about at length since late 2020, has taken centre stage. Read our latest newsletter by Benjamin van Wyk, CFA, below.

Taking over all headlines at the beginning of 2022, the Russia Ukraine tension seems to have taken a back seat as the world encounters the politics of billionaires, the fear of EU instability and temperamental weather. The war however is far from over, with conflict exacerbating the rise of inflation and supply challenges. Hot on the press for the month of April was Elon Musk’s hostile takeover of Twitter, as well as the French election and devastation in KwaZulu Natal. 

Capital markets have been exceptionally volatile during the first quarter of 2022. Benjamin van Wyk, CFA takes a look at the benefit of staying invested over the long-term, as well as the importance of determining a suitable asset allocation based on an investors’ objectives, risk profile and unique circumstances.

We saw an increase in Eastern tension as Russia invaded Ukraine on 24 February. Tension, which has been rife since the early 2000s, has intensified. Since then, we have seen the Russian rouble fall more than 20% to the United States Dollar as sanctions are imposed on the country. A notable sanction is the restriction on the Russian central bank’s access to their funds held by other central banks, limiting their access to their own financial reserves. Ukrainian President Zelensky announced on 28 February that he had signed a request to join the EU, a possibility which the bloc leaders will potentially consider this month at their informal meeting on the 10th and 11th of March.