MUCH LIKE a gardener anticipating the change of seasons, investors must prepare their portfolios for the coming changes in the global economic landscape.

Following the US Federal Reserve’s 50 basis points (bps) rate cut, the South African Reserve Bank cut rates by 25 bps for the first time in more than four years.

Yields of fixed income asset classes are declining globally (chart 1), and it’s safe to say that a rate-cutting cycle is underway. It is therefore essential to assess how these changes might impact various asset classes, and consider strategies to not only protect but also enhance returns...