Rabson: Global economy poised for growth

The year 2025 holds promise for investors amid a global recovery and broadening economic transformation, according to the 2025 Discovery Invest Market Outlook. Traditional investment paradigms may need to be reconsidered in this unusual environment. In a recent interview on CNBC Africa, Kenny Rabson, the CEO of Discovery Invest, shared his insights on the current state of the global economy and the opportunities and challenges it presents. Rabson acknowledged the complexities of the current business landscape, marked by shifting headlines and political uncertainty. Despite the day-to-day noise and volatility, he emphasized the importance of focusing on long-term financial goals and managing risk effectively. While the US has seen significant growth driven by a few prominent IT stocks, Rabson urged investors to diversify their portfolios and look for opportunities across various sectors. One key theme highlighted by Rabson is the role of technology, particularly artificial intelligence (AI), in shaping the future of innovation and productivity. He also pointed to the opportunities in sectors like healthcare, with aging populations driving demand for innovative solutions. However, he cautioned against over-concentration in a few stocks and stressed the importance of staying level-headed amidst market fluctuations. Amidst concerns about potential interest rate hikes and unpredictable developments in Washington DC, Rabson underscored the importance of staying diversified and being vigilant in identifying opportunities. While US equities have been a major focus for investors, he also highlighted potential value in emerging markets like Europe and South Africa. Rabson noted the attractive prospects in the UK, Europe, and South Africa, but indicated that US equities are likely to maintain their dominance. In the South African market, Rabson identified retail and financial sectors as particularly attractive amid declining interest rates and inflation. He mentioned the positive momentum driven by collaborative efforts between government and private entities, emphasizing the stability of the Government of National Unity (GNU) as a crucial factor in sustaining economic growth. Rabson expressed optimism about the country's growth prospects and underscored the importance of global asset managers in identifying investment opportunities. When discussing the risk appetite of clients, Rabson noted a shift towards a more balanced approach, with increased interest in equity and mixed asset solutions. As interest rates drop, investors are seeking higher returns in the market, moving away from conservative investments towards more growth-oriented strategies. He emphasized the need for geographical and asset class diversification to navigate the uncertainties of the current environment effectively. Overall, Rabson's insights shed light on the challenges and opportunities in today's global markets. As investors navigate the complexities of business unusual, a well-diversified portfolio and a focus on long-term financial goals remain essential in seizing growth opportunities and managing risks effectively.