Podcast: Beyond the Index: Where the Real Growth Is Happening

Global Investing Is Evolving 

With geopolitics and growth dynamics shifting rapidly, investors are reconsidering how and where they allocate their capital. In a recent podcast, The Finance Ghost and Kingsley Williams, Chief Investment Officer at Satrix* discussed how trade wars, central policy responses and valuation gaps are influencing investor decisions and market direction. It is a reminder that even amid uncertainty there are clear signals worth paying attention to “You can’t fool economics” Kingsley noted, and that sentiment came through strongly in the conversation.

Beyond the Headlines: Tariffs, Trade and Global Dynamics

Trade wars may grab attention, but they are often misunderstood. Tariffs effectively become a tax on consumers, interrupting market efficiency and potentially leading to higher borrowing costs particularly for the US. Kingsley referenced how proposed tariffs on Chinese goods, were effectively a trade embargo and could risk cutting off access to essential components like electronics. “It is all about finding an equilibrium” Kingsley observed, it’s about finding an appropriate balance between policy objectives with what the markets and the Main Street economy demand. These policies ripple into US bond yields, foreign investor confidence and ultimately, market valuations. Learn more about how global markets influence your investments.

China: Undervalued or Under Pressure

Despite ongoing risks, China is staging a measured comeback. After years of underperformance, the Chinese equity market rebounded by 13 percent year to date (as at 27 June 2025) following a 22% return in 2024. Valuation metrics place the market at a forward P/E of around 11, which Kingsley described as “certainly not expensive, probably fairly valued”. Structural challenges remain, including a slowing growth trajectory, an ageing population, deflationary pressure, and a deeply extended property market. Even so, Kingsley cautions against excluding China from portfolios, stating, “To not have exposure to such a large market is a risk you may not want to have.”  Explore the Satrix MSCI China ETF for targeted access to this market.

India: Rising Force with Room to Grow

While China is rebalancing, India is accelerating. The numbers tell the story
• 13.5 percent year to date return in 2025
• GDP growth of 7.4 percent beating forecasts
• Interest rates at their lowest since August 2022
Kingsley highlighted India’s digital leap with over 10 billion monthly transactions processed through the Unified Payments Interface. Combined with a youthful growing workforce and strong government investment, India is emerging as a global economic powerhouse “It is a very different picture to the ageing populations seen in many developed markets” he said. Curious about India? Explore the Satrix MSCI India ETF here.

The Case for Diversification

The message was clear. There is more to global investing than the S&P 500. Emerging markets offer growth potential and diversification, and Satrix makes this exposure accessible to South African investors. “There will always be risks in investing” Kingsley reflected “but how entities respond to those risks is what shapes long term returns”.  Explore the full range of global ETFs offered by Satrix to align your portfolio with the global economy.

Don’t miss this insight, click here to listen.
 

*Satrix is a division of Sanlam Investment Management.

Disclaimer:

Satrix Investments (Pty) Ltd & Satrix Managers (RF) (Pty) Ltd is an authorised financial services provider. The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision. While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information. For more information, visit https://satrix.co.za/products