Market report

Mr Jacob Zuma smiled at us about 4 years ago saying:” Things will get worse before they get better.”

He knew exactly what he was doing.

Our investments are linked, influenced and lead by the local as well as the global markets.

During 2017, to those I spoke to, I explained that the funds we are invested in were invested in 45% local dual listed shares as well as 25% globally listed shares the rest was invested in cash. It still is!

This was the place to be as RSA was on economically on its knees.

Come August 2017 we saw a few changes. Business confidence started risings and exports picked up radically, mostly because the USA and Europe as well as China started doing well and increased imports from us.

Come December we saw the ANC electing a new president. The exchange rate escalated to a much needed high.

Then the opportunistic Viceroy came with their announcements and damaged the likes of Steinhoff, Resilient and Capitec as well as African Bank. They had varied successes.

This as well as the strong rand wiped out all the positive returns we got in the Balanced as well as the Property environment. Or Balanced funds returns lost the full 12% and the Property Funds lost 15% we gained in the last quarter of 2017. The first 3 quarters the markets moved sideways.

Since the start of 2018 we saw that the rand stayed firm. (not good for our foreign and dual listed shares). The feedback from the fund managers, looking after our money is to stay put!

As for the portfolios we are invested in, the Balanced funds picked up to -1.15% this morning. (we started at -4.5%) The Property funds did -11,21%. (we started at -15%)

We are looking ahead to better returns soon.

Remember: TIME IN THE MARKET ALWAYS TRUMPS TIMING THE MARKET!

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