Investing With Confidence for Safety and Growth

In an increasingly unpredictable global market, uncertainty continues to dominate the investment landscape. From inflation and interest rate volatility to geopolitical conflict and currency instability, investors face a complex array of risks. In such a climate, sound investment decisions go beyond chasing short-term gains — they require a clear focus on capital protection, risk management, and long-term resilience. Investment professional LINDA EEDES explains how Foord is positioning portfolios to balance growth with resilience.

Investors seek not only attractive returns over time, but also reassurance that their capital is secure when market volatility strikes. Foord’s investment approach, honed over four decades, prioritises both these objectives through careful stock selection and rigorous risk management.

Despite recent corrections, US megacap stocks — particularly tech stocks and the Magnificent Seven — remain richly priced compared to historical levels. While they are still operationally dominant, high market valuations heighten the risk of future underperformance or pullbacks. We maintained a low exposure to this expensive segment in order to shield portfolios from concentration risk and volatility. Instead, we see significant opportunities in other global markets, especially in Europe and Asia, where fundamentals are strong and valuations better. Asian technology and communication sectors, for instance, present attractive long-term potential compared to pricier US peers. Diversifying globally enhances long-term returns while moderating risk.

South Africa continues to grapple with economic and structural headwinds. However, some businesses nevertheless still offer compelling investment prospects. While relative political stability after the formation of the GNU last year caused share prices to rerate, we remain cautious and highly selective. Our strategy includes exposure to resilient businesses, as well as globally diversified multinationals listed on the JSE. We also actively manage currency exposure to protect against rand depreciation.

With global inflation risks persisting, inflation-linked bonds here and abroad offer protection against resurgent inflation risks. These instruments deliver attractive yields and preserve purchasing power, safeguarding capital against inflationary erosion. 

Our projection last year that gold could reach $3,000 per ounce drew scepticism. Rising geopolitical tensions and economic uncertainty sparked by tariff wars have since driven gold beyond $3,300 per ounce — another all-time high. Gold remains a core portfolio hedge, providing stability and protection in turbulent markets.

Foord’s investment philosophy has stood the test of time. Since our founding in 1981, we have consistently followed a disciplined, long-term approach to investing — protecting capital in turbulent times while positioning portfolios to grow steadily over time. Our track record across multiple market cycles demonstrates the strength of this philosophy.

In 2025, investing for safety and growth is not simply desirable — it is essential. And this is precisely our focus.