Have a look at this graph. Depending on your point of view, it could be good or bad news:
What it shows is a marked drop in the price of shares on the JSE. If you bought at the top you’re down. BUT could it also mean that you now have an opportunity to buy in at good prices -thus improving your chances of one day buying that yacht and putting the kids through varsity?
Now have a look at this one, the S&P 500 index, which broadly represents the US share market:
According to Newlands- based Consequence Private Wealth the 2 images highlight the fact that the broader SA share market is to an extent still guided by offshore developed markets. And that may be a comforting thought given that they don’t expect a massive global slump like we saw in 2008.
So is SA then in a correction which will level out, or a major sustained downturn? Despite generally pessimistic local economic indicators, Consequence lean towards the former outcome.
If you’re looking for some sound advice on where to invest your hard earned cash, head over to Consequence Private Wealth. They seriously know what they’re talking about.
For example, CPW has introduced a generally lower exposure (typically 50% or less) to SA equity for single contribution investments as the market has ramped up over the last few years, so client portfolios are not feeling the full brunt of the current downswing.
Just think, if you invest your money now instead of splashing out on an average car, you could be buying an out-the-box, super shiny sports car in a few years time. Oh, yes, and the kids might just end up at Harvard after all.
[Grpahs from ft.com]
