Carla da Waal

The first half of 2025 has been defined by volatility, shifting market leadership, and a noticeable tilt toward perceived safety. Geopolitical and trade tensions remained elevated, prompting investors to move into traditional safe havens such as gold and government bonds. Central banks held a cautious stance, contributing to ongoing fluctuations in bond yields. Meanwhile, equity markets rotated toward quality stocks and defensive sectors, with some notable support for European equities.  Implementation (or not) of US president Trump’s policies on tariffs, taxes, deportations and deregulation, will dictate the direction of markets over the next few months.  In addition, persistent tensions in regions like the Middle East highlight the unpredictability shaping today’s market environment. 

Although we prefer to look through the noise and take a longer-term view, such events lead to increased uncertainties that will lead to more market volatility.   The prudent approach is to remain close to our strategic asset allocation benchmarks.  We have also retained our slight defensive tilt, with more local and offshore cash compared to our strategic asset allocation, as volatile markets could provide investment opportunities. 

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