Women and Investing

 Making sense of messy markets

If the last couple of years have taught us anything, it’s that market volatility will be part and parcel of your investment journey. Navigating the ups and downs can be challenging, but these fundamental principles taken from our interview with Elke Brink, Wealth Advisor, R21 Wealth Management, can help you stay the course.

11 Oct 2024

13 minutes

Investment principles to live by:

  1. Don’t Fear Market Corrections:
    • Stock-market corrections (drops in value between 10-20%) occur fairly regularly, typically every 18 months, and are a natural part of investing.
  2. Stay Invested:
    • Avoid making impulsive decisions during downturns. Historically, investors who remain invested perform better over the long term.
  3. Take a Long-Term View:
    • Understand that markets generally trend upward over long periods. Your investment horizon most likely spans decades, so think long term and benefit from the power of compounding.
  4. Understand Asset Allocation:
    • Diversify your portfolio with a mix of asset classes, including cash, bonds, and equities. Each asset class plays a role in managing risk and achieving your short- and long-term financial goals.
  5. Incorporate Growth Assets:
    • Ensure your portfolio includes growth assets like equities to outperform inflation over time. This is crucial for maintaining your purchasing power.

Important information

All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. We endeavour to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only.

This is the copyright of Ninety One SA (Pty) Ltd and its contents may not be re-used without Ninety One's prior permission.

Ninety One SA (Pty) Ltd and Ninety One Investment Platform (Pty) Ltd are authorised financial services providers.