Interesting times we are living in. Wars, scandals, tariffs, corruption and many more that we could add to that. And amongst all this noise, we have to make money.
Markets are taking a breather, and the Rand remains strong (or the Dollar is weaker). Some analysts and asset managers are saying that the markets are expensive and that they are predicting a correction in the near future. In saying that, we have already had a correction this year in April of about 25% (see attached). Two things I have learned from corrections is that after a correction the markets always shoot up. (see attached). So, if you just stay invested and don’t “panic sell” your funds/shares will recover and continue to go up (see attached). So that is why I always have some cash (in S.A. or overseas) so when a correction happens, it’s a brilliant time to buy.
Looking at the attached graphs you can see that the markets locally and overseas totally ignored the correction in April and just continued to forge ahead. Another thing I have learned is that in most instances you cannot predict markets going forward on what they did in the past. The world is changing so fast with groundbreaking innovations, AI, tech, etc. Anyone who is predicting what markets are going to do in the future, is guessing.