Every investor should have a plan or a strategy with his or her investment. You have an investment risk profile which guides us as your advisors, on how to assist you to be successful in reaching your long or short term investment goals.
As an investor it is important to have a long-term view for reaching your client’s investment goal. It is preferable to have different strategies and timelines for different investment goals i.e. buying a property or saving for your retirement.
This journey in reaching your investment goals is sometime bumpy, but as a team we believe that we will be successful in the long run. October was one of those “bumpy” parts of our investment journey. During my recent visit to the United States of America earlier in October, I met some knowledgeable people in the financial industry who believe the USA stock markets’ prices were to inflate and that a correction is unavoidable and we all know about the correction that took place to past few days.
The American advisors however are interested and see potential in buying Emerging Market dept for their clients’ investment portfolios.
Chart of the Dow Jones:
The global technology shares sell-off also dragged down the JSE all shares index.
Chart of JSE:
It is clear from these charts that the JSE is sensitive for market developments on the bourses of the USA. The construction of a diversified global investment portfolio however will be an important tool in reaching one’s investment goals.
Dr Riaan Botha, 31 October