February was a month of mixed fortunes across global markets. While broad equity indices showed little movement, regional markets experienced volatility. US equities reached record highs before falling sharply due to concerns about inflation and slowing economic growth. The S&P 500 lost 1.7% in a single session after weak economic data and inflation expectations surged. Meanwhile, gold has surged 10% YTD as investors seek safe-haven assets.

European equities have been a standout performer, gaining 13% this year, driven by strong economic data, improving energy dynamics, and renewed investor confidence. South African equities also delivered positive returns, mainly due to strong performances from Naspers and Prosus. However, domestic risks persist, with the budget speech delay and unexpected load shedding underscoring economic fragility.

Given the uncertainty across global markets, our investment process remains focussed on assessing risk relative to potential returns.