US equities

US equities remain expensive relative to history, particularly given current interest‑rate levels. Market performance continues to be driven by a small number of large technology companies, while broader participation remains limited.

Although the economy remains resilient, signs of slower job growth increase the risk of earnings disappointment. Elevated valuations leave little margin for error.

What this means for portfolios:
We remain cautious on broad US equity exposure and focus on investments with clear earnings support, rather than momentum alone.

UK and European equities

UK equities remain relatively attractive. Valuations are lower, dividend yields are higher and the market has meaningful exposure to energy, materials and financials — sectors that tend to perform better in inflation‑affected environments.

Europe outside the UK remains more mixed. While valuations are reasonable, weak growth and constrained policy flexibility continue to weigh on earnings.

What this means for portfolios:
We favour UK equities for income and diversification, while maintaining a more neutral stance on continental Europe.

Asia, emerging markets and Japan

In Asia, the most compelling opportunities are concentrated in a small number of technology and semiconductor companies with strong global demand. The broader region faces slower growth, trade tensions, and cost pressures.

Emerging market equities remain divided. Commodity‑exporting countries benefit from higher prices, while China continues to face trade and policy headwinds.

Japan retains a solid long‑term structural story supported by improving corporate governance. Near‑term returns, however, are increasingly dependent on earnings growth rather than valuation expansion.

What this means for portfolios:
We favour selective opportunities over broad regional exposure and maintain Japan as a longer‑term allocation.

South Africa

South African equities recorded one of their weakest monthly performances in nearly 18 years, as global risk appetite deteriorated sharply. The All‑Share Index fell 11.2%, driven by heavy losses in resources (–17.8%), as well as declines in property (–11.8%) and financials (–10.3%). Precious‑metal miners underperformed as gold and platinum prices weakened, while interest‑rate concerns added further pressure.

What this means for portfolios:
The environment favours selective equity exposure, focused on quality businesses, defensives, and companies with pricing power rather than broad market risk.

Commodities: Protection rather than growth

Commodity markets have risen sharply, driven largely by supply constraints, particularly in energy. This reflects limited supply rather than strong global demand and tends to reinforce inflation pressures.

What this means for portfolios:
We view commodities, especially energy, as a useful hedge against inflation and geopolitical risk, rather than a pure growth investment.