February was another strong month for risk assets, led by emerging markets and commodity-linked South African equities. Cooling inflation in the US and contained inflation locally are reinforcing expectations for eventual interest-rate cuts, creating a supportive backdrop for both equities and bonds. Meanwhile, attractive real yields continue to make South African bonds and long-duration US Treasuries compelling opportunities.

January marked a strong start to the year, with positive returns across equities, bonds and currencies. Inflation remains under control both locally and globally, allowing central banks to stay patient and supportive. With valuations, earnings and policy all aligning, the investment backdrop remains constructive.