Final Thoughts

Final Thoughts

Over the past few years, in my last regular Friday email for the year, I have shared that after 10 years as a financial planner, "I'm still looking for my first "normal" year (saying that it certainly wasn't it then)". Well, rather clearly, this year, yet again, certainly wasn’t it!

We were all excited at the start of the year, yet things began to feel like they were falling apart by the 2nd quarter, only to end quite strongly.   

In both SA and globally, inflation is much lower than a year ago, and we are in a global interest rate-cutting cycle. Fuel prices are much lower than a year ago, the Rand roughly 10% stronger, and as I highlighted last week, investment markets have been pleasing overall with a strong push in the 2^nd half of the year.      

Last year, many of us battled with the frustration of load-shedding, especially small and medium-sized businesses, whose countermeasures had been particularly expensive then. Pleasingly, we can see that the worst of the load-shedding is behind us.

Our rugby and test cricket teams look like they will end the year as the respective number-one ranked sides, and few would have expected the formation of our GNU.  

Looking globally, AI is ever improving, and besides the relevant investment cases, I, for one, believe that AI has many purposes and could be a game changer for preventing and detecting crime in SA. 

Our clients' portfolios are well-invested and positioned with the necessary diversification. As a result, I sleep well at night.

I remain mindful that financial planning ensures that your finances look after you no matter what markets do. The process remains only a conduit to living and optimising your ambitions, where you want to add significance to those closest to you.    

Within this framework, my concerns include longevity, where we believe the babies born today can live through to age 150. Increased medical costs after years of providers cutting back on benefits, there is little protection on future annual premium increases of 4-5% per annum over and above inflation, which is unsustainable in the law of numbers.

Our Treasury team again confirmed only just this week that there is no financial appetite for the NHI, and they appear to have the same thinking as we do: that this requires long-term, sustainable, financially sound solutions.

At the same time, education costs, including schooling and tertiary expenses, are also climbing more than inflation.

We are mindful that these global concerns are not restricted to only SA and are more financial problems than political ones requiring financial solutions.  

As the year draws to a close, I want to thank you for your valued support and wish you a wonderful festive season in making lasting memories with your loved ones.

Personal News from Jurie

I will be going on leave from today, taking some time out to spend with the family. My 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.

Hywel George on 2025

Hywel George, Director of Investments at the Old Mutual Investment Group, highlights the key themes from 2024 and makes some bold predictions for 2025.

To view last week’s webinar, click on the link below;

FRIDAY FOOD FOR THOUGHT