Investments in uncertain times!

Over the past three years the Johannesburg Stock Exchange All Share Index has performed well. Last year the Index had its best performance since the crash in 2008! The table below reflects the performance of the Index over the past three years.

The South African market is heavily influenced by world events and the recent uncertainty regarding the Russian invasion of Ukraine, the lockdown of the China economy again, rising interest rates, increases in global inflation and the cost of living and the ongoing COVID pandemic have negatively affected the South African market. South Africa, of course, has its fair share of domestic concerns – corruption, maladministration, unemployment, the devastation of the Kwazulu-Natal floods, and Eskom turning off the lights again, and again, and again, all take a toll on the domestic economy.

All these factors make for worrying times for investors. Many investors are currently very anxious regarding the declines experienced on the Johannesburg Stock Exchange over the past quarter. Whilst it is never easy seeing declines in a portfolio, investors are reminded that stock markets never go up in a straight line.

The world consists of “up” and “down” cycles. Stock markets go up and down, the property market is buoyant and then stagnant. Once all the dust has settled markets will go up again!

Declines in the stock market are quite normal and should not be regarded with fear! We, at Kevin Mills Financial Services, have always made it abundantly clear that markets go up as well as down! From time to time all markets decline! This is quite normal and part of the dynamic of any stock market. It is quite, quite normal.

Volatility in the market presents opportunities for Fund Managers to purchase shares that they believe will provide superior long term returns at reduced prices. Short-term market uncertainty offers long-term investors a great entry point into the market.

It is human nature to be anxious and worried about what the future may hold and unfortunately, we cannot predict a “silver lining.” However, investors should not lose sight of their investment goals in times of uncertainty.

So, what should investors do?

• Stick to your investment plan. Declines in the stock market are quite normal.
• Don’t buy high and sell low. That is irrational and guarantees losses!
• Ignore all the noise in the market from people who don’t understand the markets.
• You have probably invested with fund managers that are rational, competent, experienced and who have spent an enormous amount of time studying the markets. Trust them

“If You cannot control your emotions, you cannot control your money!” Warren Buffet

Marriott First World Hybrid Real Estate Fund

For investors looking to diversify their investments, we continue to favour offshore markets as a way of protecting your capital and providing inflation beating returns in the long run.

The Marriott First World Hybrid Real Estate Fund is a direct real estate portfolio of UK warehousing and regional offices as well as listed REITS, generating a reliable, growing income.

The objective of this Fund is to combine the benefits of direct and listed First World real estate to generate a reliable, predictable and growing income. With the majority of the return generated from the income yield, the investment outcome can be anticipated with a reasonable degree of certainty.

The fund’s primary focus is to provide investors with a predictable level of income. The fund has an income yield of 4.5% in Sterling and is anticipated to provide investors with returns of 6 – 7% in Sterling per annum.

“Real estate investing, even on a very small scale, remains a tried-and-true means of building an individual’s cash flow and wealth.” – Robert Kiyosaki.