Investors in SA rattled

ROCKY BOAT: DEALING WITH HEIGHTENED UNCERTAINTY LATELY

- Rory Kutisker-Jacobson

From the government of national unity's failure to agree on its maiden budget, to Trump's market-moving "Liberation Day" tariffs and South Africa's diplomatic woes, SA investors have had to contend with heightened uncertainty recently.

Investors who focus on fundamentals and recognise enduring trends that influence companies, sectors and the broader economy are more likely to achieve better long-term outcomes.

There are five key trends emerging that investors should be paying close attention to, according to Allan Gray research.

Trend 1: Global consumption trends really matter
China manufactures around a third of the world's goods, yet its 1.4 billion people account for just 12% of global consumption. In contrast, the US produces less than 15% but consumes nearly 30% of global goods and services.

This imbalance has been a key factor behind moves like US President Donald Trump's Liberation Day tariffs, aimed at boosting domestic production and reducing reliance on imports.