Investments / General

Listed property offers more value than bonds

South Africa’s listed property sector finished the week ended 11 October 2013 largely unchanged despite a stronger Rand and lower bond yields. Investors appeared reluctant to invest in risky assets while US politicians squabbled over a new budget in Washington. South African equities finished 0.5% lower, while the bond market gained 1.2%.

Investment risks worth worrying about

When building a financial plan, it is important for investors to consider the return required to achieve specific investment goals. These goals are however seldom achieved without a certain amount of investment ‘risk’, and risk must therefore be considered as a crucial element when developing and implementing a financial plan.

Communicating the big picture of investments pertinent to avoid damaging financial decisions

The current US government shut down and South Africa’s ailing exports and production industries are factors that have the potential to send overwhelmingly confusing signals to local investors. Communicating the effects of short-term market shocks and hype to retirement fund members - who need context of the big-picture economy - is crucial in order to avoid panic which may potentially lead to members changing between investments, as well as impact their long-term plans to retire comfortably.

US Government Shutdown_Will the US default?