South Africa has a relatively small equities market with a handful of dominant shares, spread across a few sectors, which are available to invest in. This presents a significant risk for investors: a highly concentrated portfolio.
While we cannot control or accurately predict market movements or macroeconomic factors, this does not mean we have no control of our own financial future. There are various decisions that we can make to ensure a more secure outlook for ourselves, even in the midst of the uncertainty.
The end of the calendar year often leads to reflection on how one’s investments have performed. Many savers are questioning the wisdom of investing in South African equities after a lean period, especially relative to what must currently feel like the safe haven of cash.
During the budget speech this afternoon, the Minister of Finance announced no surprise tax increases. The focus has shifted from revenue collection to restoring public confidence in the credibility of the South African Revenue Service and the country.
Fundhouse Investment Outlook for 2019
We all have good intentions to make sound financial decisions, but the temptation to spend makes it difficult to commit – especially during the festive season.
Given current market conditions, it is understandable that some investors would want to ‘take refuge’ in cash to ride out low equity returns – but is that a good strategy? The answer is more complicated than simply looking at recent returns.
Five principles to find the right investment manager
South African investors are fixated on the rand exchange rate, so much so that our currency movements act as a barometer of our nation’s mood: when the rand is strong, happiness pervades, but if the rand depreciates, emotions head south at the same pace – or even faster.
There are many risks that need to be overcome to ensure that retirement savings last, says Shaun Duddy, including longevity, inflation and investment risk.