Quote of The Month – Bulls and Bears Come and Go
Yuvern Dokie – Alexander Forbes Investments
“The question we are now faced with is: Will the good run in investment returns from our market continue, or will it come to a crashing halt? Unfortunately, there is no crystal ball that will tell us the answer.
Instead of looking for an answer from a crystal ball or timing the markets, look at the facts. Historically, equity markets have managed to recover more than they have lost from the bear markets. If time is on your side, the equity market may be the place to be as it consistently provides superior returns over the long term.
It is also useful to point out that although we cannot eliminate the turbulence that comes with shifting bull and bear markets, investors can manage the degree to which their investments respond to these market transitions. Spreading investment risk across multiple investment types is one way investors can experience better risk-adjusted returns, minimising volatility of returns without necessarily reducing return potential.
While the headlines and market environment continue to evoke fear, and investors become increasingly worried about their savings, remember that there are periods of contraction (bear markets) and recovery (bull markets) in every economy. Always keep your financial goal in mind when making investment decisions and speak to a financial adviser before making any drastic changes to your investment.”
Provided by Vaal Triangle Insurance
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