Disappointing investment performance over the past few years has resulted in many investors making changes to their portfolios; unfortunately emotionally driven, which can lead to greater losses. History provides us with some useful perspective. We see that periods of weak performance are followed by periods of strong performance (points 9 – 14 above); and, recoveries tend to happen rather quickly.
While we can’t control the markets we can control how we react to them.
3 repeated things that we can control are the difference between investment success or failure – regardless of what the markets are doing!
- Don’t run in fear – avg investors in SA lose approximately 3% p.a. from exiting their investments when they shouldn’t.
- Budget for it – nothing effects the end result more than how much we are putting away each month.
- Watch the fees – just an extra 0,1% annual fee makes a bigger difference than you may think.
Be brave and hang in there!