Rob Enslin

The investment outlook for 2025 reflects a complex mix of political, economic, and market dynamics. Trump’s return has shifted global expectations, with his pro-growth policies likely to boost US economic expansion but also heighten long-term inflation risks. Globally, opportunities vary across regions, shaped by diverging economic trends, monetary policies, earnings prospects, and valuations.

In South Africa, the outlook appears more optimistic. While SA fixed income was initially preferred, SA Inc. companies continue to offer compelling valuation opportunities despite inherent risks. This marks a more positive stance on local assets compared to previous quarters.

In this dynamic environment, asset allocation remains critical. US mega-cap stocks continue to inflate global valuations, while growth equities driven by the AI narrative remain expensive, increasing the appeal of value-focused equities. To navigate this evolving landscape effectively, investors should prioritise an active and adaptive approach.