Editor's Thoughts.

Last week, Wall Street had its own mood swing. The Dow had its best post-midterm day since 1982, and then gave the whole rally back the next day. Tech giants added hundreds of billions in value, then chipmakers dragged everything down. Oil dropped 8.3% on hopes of peace that no one had actually signed.

Citadel Global’s Bianca Botes says the US mid-term election result was no surprise. The markets saw it coming. What tripped investors up was their rush to price in consequences that will take quarters, not trading sessions, to play out. A slower AI build-out and an end to the Iran conflict are still possibilities, not facts.

The lesson for trustees and investors is simple: don’t trade headlines. A long-term strategy works because it doesn’t need to win every 48-hour news cycle. Keeping a level head isn’t passive. It’s discipline. But it’s hard! Every fibre of my being wants to switch out my AI investments because I can’t handle the red screen! A valuable lesson in appreciating our clients’ perspectives when we send out those disappointing returns in statements.

On the Employee Benefits side, a reality check for employers. Sanlam’s Lize de la Harpe unpacks a Financial Services Tribunal ruling: if a disability benefit sits in an employer held insurance policy and not in the fund rules, the Pension Funds Adjudicator has no jurisdiction over the dispute. Do your employees know which kind of cover they have?

And finally, the results of SA’s local government elections were largely predicted, what we can’t predict is the conversations that will unfold this week. One thing is clear to me, the time of one majority party is over, and collaboration and coalition will be key.

Coffee first. Knee-jerk decisions? Let’s try avoid those.

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