Amid a backdrop of heightened volatility in global markets, particularly in the US, the first quarter of the year has been a challenging one for investors. The team at Umthombo Wealth has been closely monitoring these market dynamics and making strategic adjustments to their portfolio to navigate the uncertain terrain. Talya Ginsberg, Junior Equity Analyst at Umthombo Wealth, shed light on their positioning and strategy in a recent interview with CNBC Africa. She highlighted the shift from a market driven by fear at the beginning of the year to one now characterized by greed. While volatility has subsided somewhat, the team remains cautious and active in managing their portfolio. The key theme for the second quarter is one of cautious optimism, with a focus on high-conviction stocks and strategic shifts in response to changing market conditions. The South African economy is poised for moderate growth, with tailwinds expected from a good agricultural season and potential interest rate cuts. Despite political uncertainty and trade challenges, Umthombo Wealth anticipates GDP growth of just under 1.5% for the year. Moving to stock-specific changes, Umthombo Wealth has made strategic moves in their portfolio, including initiating positions in companies like ARM and Exaro. The team remains optimistic about potential catalysts for unlocking value in these stocks, leveraging on balance sheets and market disconnects. In the banking sector, opportunities abound, with ABSA, NetBank, and Standard Bank among the preferred positions. First Rand and Capitek present interesting valuation dynamics, with Capitek priced for perfection but delivering consistent growth. Life Healthcare's strategic shift back to a purely South African focus has improved its positioning, while BidVest remains a steady but cautious play due to its complexity and moderate growth prospects. The team at Umthombo Wealth continues to monitor market developments closely, proactively adjusting their portfolio to capitalize on emerging opportunities and mitigate risks. As market conditions evolve, their focus remains on high-conviction investments and strategic allocations to drive long-term value creation.