March 19, 2019

Making changes to your investment portfolio because of pre-election jitters could be costly.

The upcoming elections, combined with poor market performance of the past five years, have prompted several investors to reconsider their investment portfolio construction and opt for more conservative positions. However, straying from a long-term investment view due to current uncertainty in the market, could potentially be one of the most detrimental actions to take. “While it is entirely understandable that investors become nervous at this stage, given the state of the stock market and the often unsettling news headlines in the run-up to the South African national elections which are scheduled to take place on 8 May, we do not believe that investors are likely to gain much by changing course in the middle of a poor returns cycle,” says Clive Eggers, Head of Investment Analytics at GTC. Eggers points out that markets have suffered longer periods of poorer performance...
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