Tables turn on South African investors

• The tables have turned on South African investors as the country's stock market lags its peers in 2026 due to geopolitical tensions, rising oil prices, and resurgent inflation.
• The reversal of the wealth effect, combined with elevated inflation and interest rates, will translate into lower consumer spending and slower economic growth, impacting the country's economic recovery.
• Despite the challenges, Morningstar's director of manager selection, Michael Dodd, remains optimistic about the long-term outlook for South African equities, citing pockets of opportunity and a positive outlook for financial assets.