POLITICS AND PROCESS

RETAIL – FEELING THE PINCH

WE’RE GOING ON A BEAR HUNT

Foreword | Issue 62 | 2nd Quarter 2022

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DID YOU KNOW? STOCK KEEPING UNITS

RETAIL – FEELING THE PINCH

Rising food and energy prices due to Russia’s invasion of Ukraine are compounding other inflationary pressures. Equity analyst DHERSAN CHETTY writes about how rising food inflation and rising interest rates are headwinds for consumers and food manufacturers alike in South Africa.

MARKETS IN A NUTSHELL - JUNE 2022

It is worthwhile at the half-year point to put context to the events of 2022, with global markets unequivocally into bear market territory. Markets took fright early in the year at higher and more persistent inflation and as central banks began to withdraw stimulus. As is typical of liquidity driven market shocks, most asset classes sold off and there was little diversification benefit available from the typical 60/40 investment strategy. Commodities were the outlier, still benefiting from 2021’s global supply backlogs. They were given their own booster shot by Russia’s invasion of Ukraine and the subsequent squeeze in energy and agricultural soft commodities.

MARKETS IN A NUTSHELL - MAY 2022

With developed market equities ending flat and emerging markets slightly up, one could be forgiven for thinking that May was uneventful. It was in fact another volatile month that included the markets’ worst one-day return in nearly two years. This was followed by a final week rally, driven (ironically) by hopes for more dovish US Federal Reserve policy on prospects of slowing growth. Continued market volatility should be expected in the near term, given the myriad uncertainties around persistent inflation, rising interest rates and slowing economic growth.

Foord Asset Management welcomes seasoned investment professional Linda Eedes

Foord is delighted to announce the appointment of Linda Eedes to its investment team from 1 June 2022.