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A prolonged period of poor performance from the local equity market has left many investors anxious and frustrated. While most understand the importance of taking a long-term view, it’s usually more difficult than anticipated to put this into practice. When the values of investments fall, investors’ gut instinct is to put a stop to it.
South Africa’s equity market capitalisation equates to more than 200% of the country’s gross domestic product (GDP), the highest proportion in the world and a level that is simply not sustainable.
The strongest deterrent against FSP compliance missteps is or should be: