With the JSE trading at near-record levels even amid ongoing global concerns about everything from possible stock market bubbles, accelerating inflation and geopolitical tensions between the US and China, armchair investors might be tempted to take some risk off the table by switching their portfolios into the comparative safety of the money market.
However, after speaking to Allan Gray fixed income portfolio manager Thalia Petousis they might want to instead consider longer-dated government bonds as a safe haven or even continue chancing their luck in equities. Despite the market pricing in rate hikes at every monetary policy meeting between now and the end of 2023, Petousis says the hawkish rate sentiment is overblown as the Reserve Bank may turn out to be less aggressive in tightening borrowing costs...