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Investing in the stock market has played a key role in helping investors diversify their portfolios. Money Market funds and savings account are instruments used by investors and savers, looking to grow wealth in a risk averse manner.
In order to survive as a species, people have evolved to be both risk averse and loss averse, to be fearful of such possibilities. But these attributes serve us poorly as investors. To be a successful investor, one needs to overcome that fear and to take calculated risks.
When investing, sometimes the best course of action is to do nothing. Having the ability to block out the noise, and look through the cycle, are some of the cornerstones to investment success over the long term. But what else sets successful investors apart?
It’s been over a year since the pandemic-induced stock market meltdown and since South Africa entered hard lockdown. It is time to look back and examine what this period has taught us as an industry.
In late 2019, as the African oil and gas industry was looking to the future with optimism, an Offshore Engineer wrote that the continent had reason to expect a 'more productive 2020'. Instead, the unforeseen happened, and the COVID-19 pandemic had a devastating impact on the oil and gas industry in Africa and around the world.
Many of us became more comfortable with using technology for everyday purposes like buying groceries, clothing and medication. One aspect of investing that was magnified during the lockdown was the importance of diversification. Introducing different asset classes and geographies into a portfolio can certainly be put down as one of the major lessons from last year.
It is a key objective for many wealthy families and those who own businesses to leave a legacy while encouraging entrepreneurial spirit, underpinned by the family’s core values. There are various challenges families face when transferring family offices from one generation to the next, but there are also opportunities that can protect the family’s legacy while enabling individuals to forge their own paths.
2020 challenged all of us. The most severe economic contraction in decades triggered vast monetary accommodation and fiscal support packages that altered the investment landscape. Now, as we approach 2021, the promise of COVID-19 vaccines is game changing. It encourages us to anticipate a return to pre-pandemic activities.
I recently saw multi-asset funds described as a 'balanced investment ready-meal'. I thought it such an apt description. A balanced meal has a variety of food groups represented, each providing different nutritional benefits. You’ll have some protein, some carbohydrates, some healthy fats and some vegetables.
Despite the country moving to level two of the national lockdown, most industries are still reeling from the upset caused by the pandemic and reduced economic activity. This is exacerbated by the loss of quality talent that most companies are facing due to the restructuring they had to undertake to remain afloat during the economic downturn.