Floris Slabbert, interviewed on Die Groot Ontbyt on 26 April, gives us an overview of what has been happening in the market, the gold price and the rand/dollar exchange rate and talks about why investors should avoid emotional investment decisions.
The good news is that the currency has strengthened significantly – its best improvement in weeks – which could help curb food inflation, prevent a fuel price increase and contribute to profits for JSE-listed companies.
Avoid emotional investment decisions
In light of the recent improvement in the exchange rate, the discussion also touched on offshore investments and whether it is time to bring back money you have invested offshore. Floris’ advice is to avoid making emotional investment decisions. Markets, currencies and investment values will always fluctuate, which is why investors get the best results if they get the help of a qualified financial adviser to draw up an investment plan, based on their unique goals and then stick to the plan – even when markets appear to be volatile.
He also explains why it is not a good strategy to try to time the market to achieve the best investment results. He also cautions investors that historical performance is only an indication of a fund manager’s capability, but not a guarantee that the performance will be repeated.
How to invest for best results:
- Draw up an investment plan (with the help of a qualified adviser);
- Consider inflation, tax and your investment needs and goals when drawing up your plan;
- Review your investment plan regularly to make sure it keeps up with your changing needs;
- Make sure you understand the investment costs and keep these as low as possible by negotiating;
- Avoid emotional investment decisions and follow your investment plan despite market fluctuations and popular opinions.
Consider an investment in Ecsponent’s preference shares to replace what ifs can be replaced with the certainty of predictable returns at the lowest investment cost.