Currencies & Markets Update – March 2024

Currencies & Markets Update – March 2024

A rather quiet month, given the spectacular returns we have enjoyed over the previous 4 months. Markets have gained, but Rand/USD has strengthened, absorbing some of the market growth. Hence, the portfolios have moved sideways for the month. Importantly, we hang onto the gains of previous months.

The US Federal Reserve kept interest rates unchanged (as expected) and importantly has started to signal that they may be comfortable with a rate cut in July. As a result, the US Dollar is starting to soften (weaken) which is a good thing for global markets – Hopefully this theme will continue and markets will resume their rally.

In SA the MPC of the Reserve Bank also held interest rates unchanged, in spite of inflation creeping again. The market expects interest rate cuts only in September, subject to the US cutting in July.

In this month’s update we have a look at the anticipated “Two-Pot System” that government has legislated to start in September, and what implications this has for contributing members of pension and provident funds. We also look at an opportunity for members of retirement annuities (RA’s) who are older than 55 to possibly move their investment offshore.