Recent global events, most notably President Trump’s unexpected announcement of trade tariffs, sent ripples through financial markets.

Recognising these events helps to explain the ups and downs in your investment statements and highlights why long-term planning remains so important.

When President Trump announced new trade tariffs on partners such as China and the European Union, it unsettled global markets because investors worried about rising costs and slower trade.

Confidence improved, however, after the tariffs were paused and negotiations started. By July, the U.S. stock market had recovered strongly, gaining more than 10%, with large technology companies, especially the so-called ‘Magnificent Seven’, leading the way.

But even with the recovery, the U.S. economy still showed some strain. Growth slowed slightly, and inflation rose in May. The Federal Reserve kept interest rates unchanged, showing caution in uncertain times.

This matters for South Africa because the U.S. is a key player in global finance. When U.S. markets move, they often affect other markets too – including ours.

In South Africa, the economy improved. Inflation stayed low at 2.8% in May, and the Reserve Bank cut interest rates to 7.25% to support growth. Progress with infrastructure reforms also improved confidence. By June 2025, the stock market was up more than 25% compared to last year. Bonds performed well, and the rand strengthened against the U.S. dollar.

The Woolworths Group Retirement Fund’s Balanced Growth Portfolio has performed strongly. Over the past seven years, it has met its goal of beating inflation by 5.5% a year. While recent results are encouraging, short-term gains can be misleading. That is why our focus remains on steady, long-term growth to protect and grow your savings.

Looking ahead, global uncertainty remains, with risks such as inflation and trade talks affecting markets and currencies. But South Africa’s focus on sound financial management and reforms provides us with a strong base. We encourage members to stay focused on long-term goals, and not be distracted by short-term market changes and ‘noise’.

The Woolworths Group Retirement Fund invests your money in a wide mix of local and global markets.

For many years, this mix did not add much extra growth, but now that is changing. The Fund is well placed to grow your savings over the long term.