{"id":811398,"date":"2025-02-12T14:48:33","date_gmt":"2025-02-12T12:48:33","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=811398"},"modified":"2025-02-14T16:33:45","modified_gmt":"2025-02-14T14:33:45","slug":"discoverys-message-for-south-africans-looking-to-invest","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/811398\/discoverys-message-for-south-africans-looking-to-invest\/","title":{"rendered":"Discovery’s message for South Africans looking to invest"},"content":{"rendered":"\n

Discovery Invest’s latest investment market outlook for 2025 points to many unusual market conditions, but the group says there are still opportunities for investors willing to look.<\/p>\n\n\n\n

The global economy is experiencing a stabilisation in key areas, with above-trend growth in the United States and a turning point in China’s recovery.<\/p>\n\n\n\n

The impact of AI is also reshaping how many industries work, Discovery said.<\/p>\n\n\n\n

Nevertheless, South Africa’s largest private asset manager, Ninety One, believes that South Africa\u2019s ‘virtuous economic cycle’ provides promise for investors.<\/p>\n\n\n\n

\u201cWe are navigating an atypical global environment,\u201d said Discovery Invest CEO Kenny Rabson.<\/p>\n\n\n\n

\u201cOld investment playbooks need renewal as economies transform, new leaders emerge, and long-term trajectories shift.\u201d<\/p>\n\n\n\n

Rabson said that 2025 may be a critical year for emerging markets, including South Africa.<\/p>\n\n\n\n

\u201cThere are many emerging markets that look undervalued, and I agree with Ninety One that there is an abundance of bottom opportunities,” added Rabson.<\/p>\n\n\n\n

“However, against a mixed backdrop for emerging markets – for instance, because of vulnerabilities from President Donald Trump\u2019s trade policy changes – country-specific granularity is key.”<\/p>\n\n\n\n

South Africa’s momentum under the Government of National Unity (GNU) has been encouraging, Discovery Invest said.<\/p>\n\n\n\n

The country also benefitted from a 10-month suspension of load shedding in 2024 and the start of 2025.<\/p>\n\n\n\n

Although load shedding briefly re-emerged two weeks ago, the trajectory looks positive.<\/p>\n\n\n\n

\u201cInvestors must remain aware of short-term disruptions but focus on the bigger picture: An economy that is stabilising, private-public partnerships are working, inflation moderating, and further interest rate cuts on the horizon.” <\/p>\n\n\n\n

Despite the potential of AI to improve productivity, the path to realising this potential remains uncertain. <\/p>\n\n\n\n

This comes amidst heightened competition, exemplified by the emergence of the new AI player DeepSeek.<\/p>\n\n\n\n

Considering the global and technological uncertainties, those who maintain long-term, well-diversified strategies often fare best.<\/p>\n\n\n\n

Rabson cautioned against reacting to short-term events. South African investors, in particular, have been overly conservative, which has led to many storing their wealth in cash and missing out on market rallies.<\/p>\n\n\n\n

\u201cWhile negative headlines may paint a picture of crisis, the reality is that markets have remained resilient over time,\u201d Rabson advises. <\/p>\n\n\n\n

\u201cHistory shows that disciplined investors who maintain a well-diversified portfolio benefit most in the long run.\u201d<\/p>\n\n\n

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Rabson’s comments align with the expectations of PSG Wealth\u2019s Chief Investment Officer, Adriaan Pask.<\/p>\n\n\n\n

Pask said that market conditions have seen major improvements in South Africa, which has led to boosts for several key assets, especially bonds and property. <\/p>\n\n\n\n

He added that South Africa’s markets demonstrated resilience in 2024 despite initial concerns about inflation and interest rates.<\/p>\n\n\n\n

Looking ahead, the outlook will hinge on continued structural improvements and economic policy execution. <\/p>\n\n\n\n

Lower inflation and stronger nominal growth could result in a positive economic surprise in 2025. <\/p>\n\n\n\n

The priority, however, lies in these improvements translating into tangible outcomes to sustain investor confidence. <\/p>\n\n\n\n

Pask said that South Africa enters 2025 in a much stronger position than many had previously expected, thanks to structural reforms, inflation trends, and improving investor sentiment.<\/p>\n\n\n\n

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‘Pleasent surprises’ coming for investors in South Africa<\/a><\/blockquote>