IN THE NEWS

Dear Client

Welcome to our April 2025 edition of FC Viewpoint.

IN THE NEWS:

  • The JSE All Share Index is on 88 717 on 14 April. This is 6.5% lower than a month ago.
  • 1 US Dollar will cost you R18.84; 1 Pound = R24.88 and 1 Euro = R21.39.
  • Annual consumer inflation (CPI) is at 3.2%.
  • The prime lending rate in SA finally currently is 11.00% per annum.
  • The price of Oil is $65 per barrel.
  • 25% – Magnificent 7 down 25% off recent peak.
  • The prime lending rate in SA finally currently is 00% per annum.
  • The price of Oil is $65 per barrel.
  • 25% – Magnificent 7 down 25% off recent peak.

THIS MONTH’S TOPIC: IN THE NEWS

Global markets tumbled through the week as President Trump announced new (questionably calculated) tariffs across geographies, with South Africa subjected to a 30% tariff on its exports to the U.S. The market reaction was swift and negative. Major indices experienced significant declines on growth concerns, escalating trade wars and potential inflationary pressures.

Closer to home, South Africa’s political soap opera also took a turn. The GNU saga lurches on, with more acronyms than clarity. We don’t need domestic instability at this time – the uncertainty is showing in risk appetite and the rand’s behaviour. Coalition chaos adding to the global malaise, as markets digest the noise and price in plot twists.

As always, beneath the headlines lie the real questions – not just what happened, but what it means for portfolios in a world where the rules keep changing.

While the market reaction has been sharp and unsettling, it’s critical to remember that long-term wealth creation has always required staying the course through periods of short-term disruption. Trade tensions and political noise, while loud, tend to fade in the face of enduring fundamentals, innovation, and resilience across global businesses. Reacting emotionally to market volatility often results in locking in losses and missing out on the recovery – which history has shown can come swiftly and unexpectedly. Staying invested, diversified, and focused on your long-term objectives remains the most reliable path to building and preserving wealth. The following graph of the S&P indicates the long-term growth of the S&P, despite various incidents.

TO CONCLUDE

Time in the market has historically been a better strategy than timing the market. Short-term market movements can be sharp and unpredictable, but in the long-term markets have rewarded patient and disciplined investors.

We would like to invite you, to make us part of your financial journey, in good and in challenging times and every life changing event in between. Feel free to call us, or to book a physical or online meeting. We are here for you.

Wealth regards,

Fanie Jansen Van Vuuren CA (SA), CFP®

Director: FC Wealth and Investments (Pty) Ltd

E: [email protected]  |  T: 083 384 5868

W: www.fcfin.co.za

Download this issue of Viewpoint here