Here are this month’s highlights: May saw little respite from geopolitically-driven volatility. Corporate earnings were largely positive, but global investors were left uneasy by the abrupt reversals in US rhetoric on Asia. Emerging markets bore the brunt of global risk-off sentiment. Whilst some markets were boosted by ever-higher oil prices, EMs with large current account deficits were particularly vulnerable. South African assets were not spared the broad-based sell-off. SA equities, fixed income and property markets all declined, and the rand slid against the dollar.

Here are this month’s highlights: April saw a continuation of the risk assets rollercoaster. The Syrian strike and additional US sanctions against Russia unnerved investors, China’s more conciliatory tone soothed the markets, and a mixed month-end saw the potential implosion of the Iran-nuclear deal even as peace on Korean peninsula seemed imminent. Despite resurgent oil prices and some renewed risk-appetite, Emerging Markets posted their weakest relative performance for the year-to-date. South African equities outshone global peers, largely boosted by the rally in resources and Rand-hedge blue chips. The US dollar regained its ascendancy, and buoyant corporate earnings boosted developed market equities.

Here are this month’s highlights: March was a particularly volatile month for global equities, as politics, tech and trade concerns weighed on investor sentiment. Monetary policy developments were mainly as expected, including decisions by the South African Reserve Bank to cut the repo rate, the US Federal Reserve Bank’s Federal Funds Rate increase, and the Bank of England keeping rates unchanged. Despite a shot-in-the-arm from the Moody’s ratings reprieve, local markets were weighed down by global trade jitters.

Here are this month’s highlights: Developed and Emerging market equities, in a particularly volatile month, closed mostly lower. Investors were unsettled by prospects that the Federal Reserve may hike interest rates at a faster than expected pace and talk of trade-wars. Boosted by local political developments, however, South African equities outperformed global peers. The Rand and local bond markets rallied in response to a disciplined budget, and a reformist Cabinet reshuffle.

Global Risk Assets had a strong start to 2018: Developed markets were boosted by macroeconomic data and upbeat corporate earnings. A commodity boom – as oil prices topped USD70 per barrel for the first time in three years and precious and industrial metals shone – lifted Emerging Markets. The declining USD also proved a boon to Emerging Market balance sheets. Local Fixed Income assets were mixed, with the property market dipping on Steinhoff knock-on effects (Resilient Group). Similarly, the local equity market suffered sharp declines, with Financials marred by Viceroy Research’s release of an inflammatory report on Capitec Bank.

Global Risk Assets ended the year on a high note: Emerging Markets saw their best returns since 2009, while US equities consolidate their excellent year-to-date performance. Resurgent oil prices and the energy sector led overall sectoral gains. Macro-economic and inflationary data supported a view that during 2018 global monetary policies would produce few surprises. South African investors were cheered by a change in the ruling party’s leadership, although the stock market was dragged down by the Steinhoff scandal. The Rand, in line with Emerging Market peers, posted considerable gains against the USD, and local fixed income assets rallied.

Here are this month’s highlights: Cash still well-ahead of inflation, SA Bonds continue to fall, while SA Property sustains its uptick from October. Looking ahead, the ANC’s elective conference will grab the headlines in December, and the importance of transparent and clear thinking by economic decision-makers in 2018 cannot be overstated. November carried hope and high expectations for the global investor and a weak USD continued to provide a boost for multinational companies.