We are all grappling with and adjusting to what feels like a new world order.
The announcement of a 21-day lockdown in South Africa to curb the spread of Covid-19 is the latest in a range of shocks to financial markets, the real economy and our day-to-day lives. It is unprecedented and despite the profound impact this will have on an already fragile economy, we reiterate that from a wealth management perspective, how you react will fundamentally affect your wealth.
We remain focused on our proven wealth advisory and investment process to protect capital.
Avoiding permanent wealth destruction with a defensive and diversified approach is our priority for clients in the current environment. We continue to adhere to both our well-considered, long-term investment approach and the long-term portfolio strategies that we use to help you achieve your goals.
This update (see link below) therefore explains:
A. what has changed since our last update;
B. the lens through which we view the current investment uncertainty, and what this means for you;
C. how our portfolios are positioned and affected and where to from here;
D. from a wealth advisory perspective, what you should be doing; and
E. three practical and proven ways through which emotionally intelligent people overcome uncertainty.
Previous market cycles reinforce the importance of staying the course at times like these.
If one considers the global market volatility, it is hard not to be swayed by emotions, and to try to time the markets. It is natural from an emotional point of view to wonder if you should move into cash for a while until the volatility subsides, or whether to time the markets actively by moving in and out. Based on historical research that still holds true today, one should not do this. We explain the research in detail in the update.
In addition, we provide some proven strategies to help you make better decisions when emotions cloud your judgement.
The ability to manage ambiguity and uncertainty is one of the most important skills that we all need in an increasingly uncertain business and personal environment, which is why we share some strategies to make better decisions, such as the following:
While we are physically isolated, we remain your committed wealth management partner.
We will continue to do our very best to be available to you when and how it suits you, notwithstanding the physical constraints. Please contact your wealth manager by email, the messenger function on our app, or by phone. We are here to answer any questions about your wealth and personal financial well-being.
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