It has been an exciting few weeks with local government elections. America also has their presidential elections due in November 2016. The results locally as well as globally affect hugely what we perceive the future to hold and gives rise to questions such as –
Where must one invest? Are our investments safe? Do we need to make changes?
We have the answer. Stick to the basics and stick to your strategy.
Elections are just short term events in the investment world. In South Africa there is no specific trend that occurred in markets during any elections. Markets went down and at times just stayed flat.
Part of our role as your adviser is to ensure you stay focussed on your goal and financial strategy. As stated in a number of previous blogs and which fund managers have reiterated with their research, trying to time markets do not work. Sticking with one’s strategy throughout difficult and uncertain times, will be worth it.
When investing we tend to ignore the political factor as it cannot be quantitatively and objectively measured. Political parties change policies and legislation but they do not change your goals.
The only time an adjustment is made to your strategy is when YOUR life goals change. This can be for example a change in your employment or when a new dependant joins the family. It is all about YOU. What do YOU need to reach your goals?
Choosing investments with a consistent investment process suitable to your own goals and risk tolerance is key. If this is done correctly then you do not need to make changes.
When there are changes in mandates, fund managers or merges between funds, we monitor the portfolios to ensure that it stay relevant to your strategy.
Please contact us if you wish to discuss this in more detail.
