Whats on our minds
Each month we look at current events and trends that shape our thinking and influence the markets and our investments. It’s an informal style of feedback and commentary from the team at CGWM.
Markets often experience extended sideways periods, where valuations compress and fundamentals catch up, despite underlying earnings growth. These periods, while frustrating, are not stagnant; dividends and active management can still yield returns.
Gold’s scarcity and historical use as a store of value make it a unique investment. While its price is influenced by market sentiment, it has consistently preserved purchasing power over time, making it a reliable hedge against inflation and economic uncertainty. Despite criticisms of its lack of utility, gold remains a valuable portfolio diversifier.
A valid will is a crucial component of proper financial planning, granting you control over how your estate will be managed. Without one, the Laws of Intestate Succession apply, often leading to delays and conflicts.
The Rand’s journey reflects South Africa’s turbulent history, from gold-backed strength to volatile depreciation. Influenced by global shifts, domestic politics, and commodity prices, its future hinges on addressing core economic challenges both locally and globally.
Governments control fiscal policy (taxes, spending), while central banks control monetary policy (interest rates). Fiscal dominance occurs when governments force central banks to finance their debts, leading to currency debasement and inflation.
The U.S. national debt spirals, raising an uncomfortable question: Is America acting like an emerging market? With trillion-dollar deficits and growing fiscal dominance, the dollar’s future and global economic stability face unprecedented risks, proving deficits matter.
