Many friends, colleagues and associates I meet these days seem to have been completely paralysed by the present situation. Their biggest fear is that the world financial system is headed for collapse. This is underpinned, for instance, by various research outfits beckoning that, while the first Covid-19 wave has wreaked havoc, a second one could be far worse.
The huge slump that could follow, they argue, could take a huge bite out of your nest egg. They propose that you ought to start financial distancing at the very soonest to protect your money. The worst-case scenario could be a sink-or-swim situation over the next few years.
These contentions are often compounded by successive news broadcasts, each more disturbing than the last.
But what’s new? We’ve been through this before, notably the collapse of the Soviet Union in the late 1980s, the bombing of New York’s World Trade Centre in 1993, the 1998 Asian financial crisis, the rising threat of radical Islam, the 2008 financial collapse, and Greece and Italy’s singular crises more recently.
The extreme projections may or may not materialise, but there is also a case to be objective and prudent in your approach.
Ideally, one needs to be invested across the planet (not being dependent on one particular geography); be exposed to companies that provide day-to-day necessities, such as Unilever, Johnson & Johnson and Nestlé; have sound long-term performance records; and can bank on dividend yields in the region of, say, 3%.
Continue reading your story on the app
Continue reading your story in the magazine
SO, WHAT NOW?
AS WE PUT 2020 BEHIND US, 2021 ISN’T EXPECTED TO LOOK MUCH BETTER (THOUGH A LITTLE).
The outlook for SA's four popular investment instruments
As 2020 draws to its bitter close, some respite may lay ahead for local stocks and bonds. The drive to list a diversified basket of offshore-focused exchange-traded funds will likely continue unabated. And the rand? Lest we burn our fingers in ever predicting our volatile currency.
MAKING BAD (INVESTMENT) DECISIONS IN A PANDEMIC
Many investors fell into the trap of either selling stocks at depressed prices during the March market rout, or cashing in their pensions.
Goodbye 2020 ... Hello 2021
Schalk Louw shares his outlook for the largest asset classes available to local investors.
How Has The Covid-19 Pandemic Affected The Inflation Outlook?
Due to deglobalisation and higher commodity prices, inflationary risks are increasing worldwide.
How Technology Influences Politics
Advances in how we communicate will continue to create opportunities for those who want to sow division.
The curious case of the US elections
Introducing Refined Ruggedness
The Ford Ranger Thunder exhibits double-duty dexterity off- and on-road.
Medical Schemes' Healthy Reserves Underpin Lower Premium Increases
The medical aid scheme industry is faced by stagnant membership as South Africans suffer from economic headwinds. Nevertheless, schemes are well positioned to buffer the effect of Covid-19.
Emerging Markets … And Trends
As developing nations navigate their way through the worldwide pandemic, there just might be some investment opportunities starting to emerge, writes Jaco Visser.
AMERICANS CAN PAY THEIR CREDIT CARD BILLS, BUT FOR HOW LONG?
The coronavirus pandemic hasn’t stopped Americans from keeping up with their credit card payments, thanks in large part to government relief programs passed by Congress earlier this year.
Getting More from Less
Everyone has been forced to cut back in some way—but limitations can lead us to even greater growth. We asked six entrepreneurs: What unexpected benefits have you gotten from change?
Are We Going Digital Forever?
The pandemic swiftly moved our world online. Once you discover the power of engaging your customers digitally, you won’t want to go back.
Japan's Softbank Back in The Black As Investments Improve
Japanese technology company SoftBank Group Corp. said it bounced back to profitability in the last quarter as its investments improved in value.
Focus On Your Mission
Our worlds may feel shaken. But we’re actually much sturdier than we think.
My Mentor Taught Me Always Go Deeper
A branding expert weighs in on a promising business idea.
Give Your Portfolio Some Shine
With a weaker dollar and inflation stirring, it’s probably a good idea to diversify with a little gold.
Death and Taxes
The Trump tax cut failed to deliver for all but the very rich. And the gop thinks this is the perfect time for more.
An Alternative Way To Get Burned
YieldStreet pitches investments you can’t get elsewhere. That’s not always a good thing
Lower Your Health Care Costs
Health savings accounts help defray the cost of high-deductible health plans. They’re also a powerful way to invest for retirement.