Market update june 2025

Cutting Through the Noise, Finding Consistent Growth

With global markets sending mixed signals—rising interest rates, geopolitical tensions, and a shifting economic landscape—investors are asking one key question: Where can I still find reliable, long-term returns?

At Thrive Wealth Management, we focus on clear, proven strategies that help our clients grow and protect their wealth across both local and offshore markets. Here’s how.

1. Equities Remain Resilient

Despite economic and political uncertainty, global equities—especially in the U.S.—have remained strong. As of mid-2025, the S&P 500 is trading near all-time highs, supported by:

• Strong consumer spending in the U.S.

• Continued innovation in AI and tech

• A weaker U.S. dollar, which benefits multinational earnings(Source: Bloomberg, Reuters, JPMorgan Asset Management)

Equities continue to offer strong long-term growth potential, especially when focused on companies with solid fundamentals and sustainable earnings.

2. Consumer Defensive Stocks Are a Core Foundation

In every cycle—whether markets are booming or contracting—certain sectors remain essential. At Thrive, we maintain strategic exposure to consumer defensive stocks (like food, healthcare, and household goods), which tend to hold their value and deliver consistent returns.

These businesses produce what people need regardless of economic conditions. Their reliability and pricing power make them a smart anchor for any portfolio.

3. Fixed Income is Back

After years of ultra-low interest rates, bonds and income instruments are once again offering meaningful returns:

• The U.S. 10-Year Treasury yield sits around 4.4%, a level not seen since before 2020.

• South African bonds offer attractive real yields for local investors, especially in tax-free accounts.

• Short-duration bonds and structured income solutions offer ways to earn without taking excessive risk.(Source: FT, Morningstar, Old Mutual Wealth)

For the first time in years, fixed income can be a true income generator, not just a capital stabilizer.

4. Alternatives Offer Diversification and Yield

With market volatility increasing, investors are turning to alternative assets to enhance portfolio resilience:

• Private credit, infrastructure, and hedge strategies can provide returns less correlated to equity markets.

• These instruments help reduce portfolio risk while still targeting competitive yields, often 7–10% annually depending on the structure and underlying asset.(Source: BlackRock, Schroders, 2025 Global Investor Survey)

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Alternatives are no longer just for institutions—they are now accessible, practical tools for high-net-worth individuals.

5. Innovation is a Growth Driver

We don’t chase trends. But we do identify innovation early, where real-world adoption and earnings growth are taking off. Strategic allocations to AI, biotech, clean energy, and automation can provide additional upside in a well-balanced portfolio.

When carefully selected and properly weighted, innovation can significantly enhance long-term returns.

6. Timing the Market? No. Time In the Market? Always.

Markets will fluctuate. Wars will break out. Governments will change. But history proves that staying invested—especially during uncertainty—delivers better results than trying to time entries and exits.

According to a 2024 Vanguard study, missing just the 10 best-performing days in a decade can cut your total return by more than 30%.The solution? Stay invested. Stay diversified. Stay disciplined.

Why Clients Choose Thrive Wealth Management

At Thrive, we don’t offer guesswork—we offer strategy.

• Global diversification tailored to your risk profile

• Smart portfolio construction across equities, bonds, alternatives, and innovation

• A focus on essential sectors and income-generating investments

• Consistent returns, managed with discipline and data

  
  

Whether you’re preparing for retirement, managing a business sale, or building intergenerational wealth, we help you cut through the noise and focus on what works.

Let’s build a portfolio that thrives—no matter the market.