Market Update February 2023

During the year 2022 global economies were faced with significant challenges where ruthless monetary policies were implemented to curb rising inflation. Contractionary monetary policies and rising interest rates have put severe financial pressures on investors by reducing cash flow and the ability to invest, ultimately, leading to a sharp decline in asset prices.

Political instability through sanctions, Chinese Covid-19 restrictions and the Russia/Ukraine war led to tight labour markets, currency volatility and increased stress on global supply chains which left the world skirting on the edge of a global recession.

The outlook for 2023 has improved on the back of cooling inflationary data. Interest rates are the most common monetary policy tool used to combat rising inflation. Rate hikes by the Federal Reserve are expected to be less frequent and less severe over the first quarter of 2023, relieving investors’ financial pressures and the cost of debt. The Johannesburg Stock Exchange (JSE) has seen significant improvement since October last year, rallying 20-25%; offering investors a great sigh of relief.

Our outlook is to remain invested during these trying economic times. Our portfolios are well diversified amongst multiple asset classes, local and offshore, which hedges us against sharp selloffs in the market. Losses are only realized upon the sale of your investments and therefore forfeit the opportunity to take advantage of the upside once markets recover.

Contact Apio Wealth at or 011 799 6400 for any assistance or advice.