Markets: Headwind headaches
Multiple factors could affect the outlook for the year ahead, writes Johann Barnard
Making accurate predictions on short-term economic and political events that could shape markets has become just about as futile as making longer-term predictions. The volatility in markets is matched only by recent seismic shifts in global geopolitics that has everyone scratching their heads.What are investment professionals to make of the implications of North Korea shedding its pariah state mantle, or the US apparently intent on sparking outright military conflict in the Middle East?"My biggest concern has been the geopolitical uncertainty, as well as the oil price," says Hannes van den Berg, portfolio manager of Investec Equity Fund. "With what’s happening in Iran and the Middle East, if the oil price keeps going higher, that will filter through in various forms into our inflation numbers."So I’ve been trying to get my head around what this means for inflation, interest rate expectations and emerging market currencies."These are all factors that could materially affect the outlo...
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