The unsettling truth behind a booming market

THE financial backdrop in 2025 is unusual: international and local stock markets are booming simultaneously.

- CHRIS COETZEE

A "No Debt December" could shield families from 2026's potential economic winter, says the writer. | FILE

With US and local markets rallying, gold prices at all-time highs, and reaching new peaks, there's even talk of an Al bubble. This confluence of factors creates a powerful sense of financial confidence, yet it can also be seen as a classic setup.

It's the kind of exuberance that has historically preceded sharp market corrections.

The concern is simple and sobering: taking on new debt right now might become a heavy burden for consumers come 2026 if these global market dynamics shift.

Experience from past economic cycles resonates deeply. If this perceived “bubble” does indeed burst, we could be looking at a global recession as severe as the early 2000s or the 2008 housing market collapse.

When international investors seek safe havens, their investments in the local JSE might quickly go elsewhere.