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.
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.
Long-term success comes from investing for the long term, having a solid plan, and letting compounding work its magic.
Hospitals reveal the true nature of people, showing that differences fade in the face of shared humanity. Life is fleeting, so prioritize love, respect, and living fully, rather than dwelling on material possessions or waiting for perfection.
The current administration’s “America First” approach, prioritizing competition, could lead to a less stable multipolar world.
