Our investment environment is boring and scary at the same time. Our investment returns are slow because of that.
Even the 10-year figures are very low. In 2007 we got very good returns, these returns will fall out of the 10-year cycle in September. In 2008 though the market crashed. In September this year we shall see a very different picture.
The only actions we can take now is:
Stay put until the upswing comes. It is expected to come soon. To change or switch portfolio’s now will be a big mistake. Even the income fund returns are slowing down.
Reduce the income you draw. Those of you drawing an income of between 9 – 12% runs the risk of losing capital fast. This tendency might be short lived but is very important now!
Our capital might recover soon.
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