2024 is Shaping up as a Great Investment Year

2024 is Shaping up as a Great Investment Year

Americans recently celebrated Thanksgiving. South Africans can be grateful for the improved economic outlook, lower inflation, falling interest rates, and a more constructive political climate.

Barring some December calamity (touch wood), 2024 will also be a good year for investment returns.
Not every year delivers double-digit real returns across shares and bonds. They usually perform well at different times.

A long-term investment horizon will also comprise good, bad, and boring years. Missing out on the good years because you fear the bad ones will result in mediocre long-term returns.

Often, one needs to sit tight until a year like 2024 arrives and boosts your portfolio.
It's most certainly not been plain sailing. Yet, if we consider the extreme pessimism and negative sentiment in SA this time last year, much has changed.    

At the same time, however, there’s still considerable uncertainty on the global political, geopolitical and monetary policy front, where, for example, just yesterday, we saw the French no longer having a government in place.

Looking at the various asset returns to the end of November for this year-to-date, it’s been a great year for most of the asset classes;   

SA Records further Trade Balance Surplus

 SARS announced late last week that South Africa recorded a preliminary trade balance surplus of R14,6 billion in October 2024.

This surplus was attributable to exports of R179,6 billion and imports of R165,0 billion;

I enclose the full SARS media release per the attachment if you enjoy the details. On the back of a good year both locally and abroad, a lot more money is flowing into SA.

In turn, this has seen the Rand to the end of November, as one of the strongest currencies this year-to-date;  

We’ve spent much of the year climbing the wall of worry, and this year is thus another classic example of how, if you waited in Money Market funds until the “dust settles” instead of investing in at least a diversified market portfolio, the opportunity would have been missed.

Some personal news from Jurie

I will be going on leave from Friday next week taking some time out to spend with the family. The family will be growing in the holidays as my wife, and I are anticipating the arrival of our baby girl Hannah around the 30^th of Dec. The office will still be open until the 20^th of Dec and back on the 6^th of January with myself joining on the 13th. As always, with any emergencies, just send me a WhatsApp or give me a call.

Friday Food for Thought