The past 5 years were very difficult in the market. Nothing in the markets were normal – some countries in Europe have negative interest rates. Yes, you pay the bank to keep your money.
In America the short term interest rates are higher than the long term interest rates – you will get a better return on investing your money for 3 months, than for 10 years. And fluctuations in the market is the norm.
South Africa is only 0.3% of the global economy, so everything that happens abroad has an impact on our markets.
In SA we are positive that our Government is on the right path. Yes, we are all anxious that the changes we seek is not happening quick enough and load shedding is not making it any easier. However, if we look at the bigger picture and cut out all the noise of negative people and exaggerated media, we are in a better position than 3 years ago with Nene-gate when we went through 3 ministers of finance in one month. We must keep faith.
Now Corona has hit the world! I am sure you have received lots of information on the Corona virus and have seen/heard about the negative impact on financial markets.
The total impact of this virus is still unknown and the markets have already dropped considerably.
Taking all of the above into account, now is not the time to make any changes to any portfolios or to withdraw any money. If you have to withdraw money, it would be advisable to reconsider or to make alternative plans.
It is however the perfect opportunity to invest. Markets are currently cheap and the possibility of future growth promising.
The following quote rings true during these times:
“Never cut a tree down in the wintertime.
Never make a negative decision in the low time.
Never make your most important decision when you are in your worst moods.
The storm will pass.
The spring will come.”
– Robert H Schuller
So let us not panic. Be patient during these times. Focus on those things within our control. Focus on your health and your family and give your investments some time to recover. Recovery will come.