SA Markets rise to Global Attention

SA Markets rise to Global Attention.

The most overused word of the year, ‘uncertainty’, was last week put to work again, but we end this week far more settled than last weekend, when the US entered the Israel/Iran conflict that we all saw live on our TV screens. 

After last weekend’s viewing, I am looking forward to this weekend to seeing the Boks play their first rugby match of the year, against the Barbarians on Saturday. 

Earlier this week, I shared the thoughts of our investment strategist, Izak Odendaal, that subsequently featured in Moneyweb – you can read our rounded views by clicking on this link. 

The madness and the mundane - Moneyweb

Izak makes the point in his conclusion, “that while these geopolitical events hog the headlines and cause market volatility, long-term equity market returns are driven by something much more mundane, namely the profits generated by companies across the world, and a willingness to remain invested and benefit from the power of compounding. The mad events of the past two weeks do not change this”.

Markets both globally and locally have had to deal not only with this but also the Nvidia/Deepseek issues earlier this year, and thereafter the Trump Tariffs that saw great uncertainty on 2 April, dubbed “liberation day, that, after 40 days, saw a 90-day reprieve. With this 90-day reprieve ending in a fortnight, I am relatively certain it will once again drive news headlines.       

SA and offshore markets, recovering from all these events, have been performing well year-to-date (as of the end of yesterday). 

Blackrock Comparing Global Assets, including SA

BlackRock, based in the US and the world's largest asset manager, recently updated its global market valuations, noting that SA Markets significantly stand out compared to other offshore markets.    

Starting valuations seldom inform returns over a tactical horizon, and we are in an era of megaforce transformations. 

However, Backrock note that it is worth noting that offshore multi-assets look expensive by standard measures, and this translates into vulnerability at moments of shaken confidence. The US and India, over the last year, are a good case in point (see the chart below). 

That the US markets (SPX and Nasdaq) are making or close to making new all-time highs, BlackRock's view is that this means that all seems to be back on track for the US. 

On the very right-hand side at the end of the chart, is South Africa – and this shows a substantial increase in valuations over the last year, while there’s still much headroom in the future too.

For South Africa, it appears that global markets are paying increasingly close attention to our markets.  

 Financial Planning is a Lifelong Journey

Your financial goals evolve as your life does, from your first job and starting a family, to growing your wealth, planning for retirement, and leaving a legacy.

At Private Wealth Management, we believe financial planning isn’t a once-off event; it’s a continuous journey, shaped by your lifestyle, your priorities, and the moments that matter most.

Here’s what a lifelong financial plan considers:

🔵 Building a strong foundation in your 20s and 30s
🔵 Managing risk and protecting your loved ones
🔵 Growing and preserving wealth over time
🔵 Planning for retirement with confidence
🔵 Structuring your estate and legacy

SARS Tax Season | Who Doesn’t Need to File a Tax Return

The SARS e-filing tax season opens next month, and taxpayers can then start submitting their February 2025 tax returns.  

However, even if you’re a taxpaying salary earner, you do not have to file a return in 2025 in the following instances: 

• If your salary does not exceed R500 000 annually from a single source (R41 666 per month). This does not include a retirement lump sum.

• Income generated from an interest in South Africa not exceeding R23,800 (less than 65 years old) and R34,500 (older than 65 years of age (this excludes any tax-free investment).

• Tax-exempt dividends where the individual was a non-resident throughout the year.

• Amounts received or accrued from tax-free investments throughout the year.

• A single lump sum payout received from a pension fund, provident fund or retirement annuity fund where tax has already been deducted in terms of a tax directive.

Exceptions to the Rule

SARS auto-assessments are making it quicker and easier than ever to put tax season in the rearview mirror. 

However, the above may not apply in the following circumstances:

• If you’ve paid any allowances for business travel, accommodation or subsistence.

• If you receive any taxable benefits through your employment.

• If you accrued any salary/income outside of South Africa.

That Extra Bot from Old Mutual Private Clients

Attached please find the latest That Extra Bit, where we share a few interesting articles on some of the companies we hold in our portfolios.

In this week’s issue:

• Adobe’s new Project Indigo app brings pro-level photography to iPhones

• L’Oréal launches campaign to promote refillable beauty products

• Amazon reorganises its health-care business to compete in a trillion-dollar market

Personal News From Jurie

I will be taking my family up to the Kruger next week, on Thursday, for a mid-year break. We will be away from 3 July for a week until 10 July. At this time, I will have limited access to my emails. The office will continue to operate as usual. Please feel free to contact them directly at 021 555 9300. Ask for Danja, Angela, or Charlene; they will be able to assist with any administrative-related queries. If they can’t help, feel free to give me a call or send me a WhatsApp message, and I will assist as soon as I return from the bush.

Friday Food for Thought