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PSG Wealth
  • Dear Client

     
    Several investors have experienced uncertainty and anxiety since the equity market correction in late 2017. Some feel let down by growth investments and believe adjusting their investment portfolios may be the answer to finding peace of mind. This is understandable. The graph below reflects the surge in the JSE All Share Index (JSE ALSI) since the latter part of 2016, prior to the decline of about 10% from the ALSI’s recent high.

     
    The major US indices reflect similar corrections following recurring record highs. Investors’ enthusiasm contributed towards equities being overvalued. When market participants realised this, a short-term sell-off was triggered including top shares.
    JSE All Share Index (JSE ALSI)
    Heavyweights such as Naspers, Sasol, Richemont and British American Tobacco also suffered substantial share price declines. Are drastic measures necessary, and if so, what is the appropriate way to address this? Calm reflection is essential, instead of being carried away by relatively short-term events triggering an emotional response.
     Successful investors who have experienced and survived numerous investment cycles achieve investment success by following a disciplined process, including:

     
    • exercising patience – i.e. not constantly moving in and out of the market and/or unit trust investments purely based on disappointing short-term performance
    • taking a long-term view on investment performance, which will provide peace of mind
    • following a well-thought-through investment plan based on meaningful risk diversification (i.e. the appropriate mix of asset classes and stock selections) and a clear understanding of needs, and consistent investment management in line with the plan
    • sticking to your investment plan through down cycles in the market, if your circumstances don’t change drastically
    • focusing on the shares of quality companies and unit trusts managed by quality asset managers
    • acknowledging that market cycles exist and that quality companies may also feel the pinch when trading conditions and sentiment deteriorate; however, in most cases they do have top managers and sound business acumen and experience to keep long-term success and survival within their reach
    • using reliable investment research and decision-making data
    • consistently keeping in touch with your investment manager and trusting the quality of this relationship and the advice given

     
    We would like to assure you that we do understand if you feel anxious about the uncertainties. Our professional expertise lies in the design and implementation of your investment plan. The advice we offer is underpinned by global investment insights and experience. We are always committed to your interests. So we would like to urge you to partner with us in taking a calm approach to your investment interests, to put your mind at rest.

     
    Let us address the challenges of these uncertain times together.

     
    Kind regards
    Hannes and team
    PSG Hermanus Portfolio Management and Stockbroking

     
  • Beste Kliënt

     
    Daar heers onsekerheid en onrustigheid by etlike beleggers oor die korreksie op die aandelemark sedert laat 2017. Sommige meen dat eibeleggings hulle in die steek laat en dat gemoedsrus gesoek moet word deur beleggingsportefeuljes daadwerklik aan te pas. Dis verstaanbaar. Die onderstaande grafiek toon dat die JSE-indeks van alle aandele (JSE ALSI) sedert laat 2016 skerp gestyg het, voor die daling van ongeveer 10% sedert die ALSI se onlangse hoogtepunt.

     
    Die VSA se belangrikste aandeelprysindekse toon soortgelyke korreksies nadat rekordhoogtepunte herhaaldelik bereik is. Beleggers se geesdrif het daartoe bygedra dat aandelewaardasies te hoog gedryf is. Toe markdeelnemers dit besef, het dit gelei tot sterk verkoopaksie oor die kort termyn, ook van topklas aandele.
    JSE All Share Index (JSE ALSI)
    Toonaangewende aandele soos Naspers, Sasol, Richemont en British American Tobacco het oor hierdie termyn wesenlike prysdalings getoon. Is drastiese optrede nodig en, indien wel, wat is die aangewese benadering? Dis noodsaaklik om rustig te besin eerder as om toe te laat dat betreklik kortstondige gebeure gemoedsrus versteur en emosionele aksie veroorsaak.

     
    Suksesvolle beleggers wat talle beleggingsiklusse beleef en oorleef het, behaal beleggingsukses deur harde dissipline toe te pas. Dit sluit die volgende in:

     
    • toon geduld, d.w.s. moenie kort-kort in en uit die mark en/of effektetrustbeleggings skuif suiwer op grond van teleurstellende korttermynprestasie nie
    • beoordeel beleggingsprestasie oor die lang termyn; dit verskaf beleggingsgemoedsrus
    • volg ’n deeglik voorbereide beleggingsplan, gegrond op sinvolle risikodiversifikasie (d.w.s. die gepaste mengsel van bateklasse en aandelekeuses), met duidelikheid oor behoeftes en bestendige beleggingsbestuur in ooreenstemming met die plan
    • hou by u beleggingsplan indien u situasie nie drasties verander nie, al betree die beleggingsiklus daalfases
    • fokus op gehaltemaatskappye se aandele en kwaliteitbatebestuurders se effektetrusts
    • erken en aanvaar dat marksiklusse bestaan en dat gehaltemaatskappye se benadering ook negatief geraak kan word wanneer saketoestande knyp en sentiment verswak; hulle beskik egter meestal oor topgehalte bestuur, sterk balansstate en goeie sakevernuf en - ondervinding wat langtermynsukses en -oorlewing binne hulle bereik hou
    • gebruik betroubare beleggingsnavorsing en besluitnemingsinligting
    • behou noue, deurlopende kontak met u beleggingsbestuurder en volle vertroue in die gehalte van hierdie verhouding en die advies wat gegee word

     
    Ons verseker u graag van ons begrip wanneer onsekerhede u pla. Ons grootste professionele vernuf is vervat in die opstel en implementering van u beleggingsplan. Die advies wat ons aanbied, word deur globale beleggingsinsigte en - ondervinding onderskryf. Ons is deurgaans toegewy aan u belange. Ons moedig u aan om rustig saam met ons oor u beleggingsbelange te besin en daardeur gemoedsrus te kry.

     
    Laat ons die uitdagings van hierdie onsekere tye saam aanpak.

     
    Vriendelike groete
    Hannes en span
    PSG Hermanus Portefeuljebestuur en Aandelemakelary
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  • Combining Expert Knowledge

    Providing One Solution


  • Ryno Wilson

    Ryno Wilson

    Key Individual

  • Trevor Doorly-Jones

    Trevor Doorly-Jones

    Head of Investments

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