U.S recession looms: SA investor playbook

The past week has been a rollercoaster for financial markets, with the United States embroiled in reciprocal tariffs that have sparked fears of stagnating growth, rising inflation, and the possible unraveling of decades' worth of economic consensus. Despite the initial turmoil, markets are showing signs of recovery, leaving investors with a myriad of questions about the future trajectory of global trade and economic stability. To delve into the intricacies of investment strategies amidst these growth fears, CNBC Africa sat down with Mamokete Lijane, Global Markets Strategist at Standard Bank CIB. Lijane sheds light on the recent market dynamics and provides insights into the potential shifts in investment paradigms. One of the key themes that emerge from the discussion is the uncertainty surrounding U.S. exceptionalism, as investors ponder whether the U.S. market will continue to outperform global counterparts. Lijane highlights the recent behavior of the U.S. dollar and Treasuries, pointing out the atypical fluctuations that have left market participants puzzled. The interview also underscores the importance of monitoring U.S. policy decisions and their impact on global markets. Lijane emphasizes the need for a cautious approach and diversification into alternative markets, such as Europe and emerging economies, to mitigate risks and capitalize on potential opportunities. The discussion further extends to South Africa's equity rotation, with Lijane urging investors to reassess their offshore allocations and consider the country's growth prospects. Amidst the uncertainty, Lijane remains vigilant about key market indicators, including U.S. economic data, tariff rollback announcements, and the broader implications for global trade and commodities. While the road ahead may be fraught with challenges, Lijane encourages investors to stay informed, remain adaptable, and brace themselves for continued market volatility in the coming months.