Money Matters

April 2025

Lisa and I were fortunate to attend the recent BizNews Conference in Hermanus—an intense, thought-provoking few days that left us both challenged and inspired. From Helen Zille’s stark analysis of South Africa’s place in a shifting global order to Moeletsi Mbeki’s scathing critique of a century of nationalist governance, the speakers didn’t hold back. Rob Hersov, Prince Mashele, RW Johnson, Neil de Beer and others offered sharp, often uncomfortable insights into the state of our politics and economy.

Themes of disruption and resilience echoed loudly as we returned to a world in flux. Trump’s tariffs are shaking global markets, NATO is under pressure, and South Africa’s fiscal outlook grows more precarious. We thought it would be meaningful to include JP Landman’s perspective on the Budget and Tariffs.

In times like these, the best response is to stay grounded, keep perspective, and avoid reactive decisions. We begin with an article that explores just that – how market corrections test more than just portfolios, they reveal who we are as investors.

As always, we aim to keep you informed, challenged, and a step ahead.

I’m sure many of you are feeling shell-shocked by the current global dynamics—with President Trump’s proposed tariffs adding fuel to the fire and sending markets into turmoil. Periods like these remind us just how important it is to stay grounded as well demonstrated in Marius’s article.

Market corrections don’t just test portfolios; they test people.

In a bull market, everyone feels like a disciplined, long-term investor. Confidence is high, portfolios are growing, and the temptation to believe in one’s own investing skill is strong. But when the market corrects—when prices fall, fear spreads, and uncertainty takes hold—that’s when your true investor identity is revealed. Market corrections are more than just financial events; they are psychological tests. They expose whether your investment approach is built on solid principles or merely on the comfort of rising markets.

Budget 2025 – The numbers in the Budget vote.

The vote on the Fiscal Framework was 194 for and 182 against, thus a slim majority of only 12. However, 24 members of Parliament (MPs) did not vote. A lot of uMkhonto weSizwe (MK) and Economic Freedom Fighters (EFF) members were absent, and some MPs who spoke against the Budget left the chamber before the vote.

Some calculate that if everyone who had spoken against the budget voted, the ‘No’ votes would have been 195! As Wellington has reputedly said after the battle of Waterloo, ‘It was a damn close-run thing’.