Gearing up towards the end of 2022

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BUSINESS NEWS AND VIDEO - As we head into summer in South Africa and the end of the year, it seems that time is flying again.

“The bad news is that time flies, the good news is that you are the pilot”- Michael Altshuler

So far, 2022 has seen markets retreat significantly from 2021 highs, and if you overreacted and let emotions get the better of you during the year, you ran the real risk of a permanent loss of capital. As we look back on the year, the record high inflation numbers in the USA together with increases in interest rates worldwide, as well as the Russia and Ukraine war, have all been key factors in economists predicting that a recession may follow and that there are tough times ahead. But we must remember that markets tend to look forward and price in all these factors, and we might be entering a recovery in some aspects, sooner rather than later.

If we look at history from the last 20, 50 and 100 years, having suffered through September, global markets tend to experience more positive performance during the last three months of the year.

Even though the chance of this may look slim this year, when compared with previous years, a last quarter increase in markets prices could very well change overall investor returns for what has thus far been, a very difficult year in the markets.

Nonetheless, we must remember that markets are, and always have been, volatile. Emotions can be one of the biggest destroyers of wealth when panic sets in and assets are sold at undervalued prices during market downswings.

Trouble represents opportunity.

As per Warren Buffett’s quote “to be greedy when others are fearful, and fearful when others are greedy.” Yet so few of us manage to successfully view a downturn as the opportunity that it truly is. You must commit yourself to investing faithfully and even increasing your savings when times are tough in the markets.

Our focus at PSG Wealth Silver Lakes Outeniqua is on structuring, growing and protecting our client’s wealth.

Whether you are in the process of accumulating capital for retirement or already retired, suitable structuring of your investment plan plays a critical role in achieving the required goal.

“The stock market is a device for transferring money from the impatient to the patient” – Warren Buffet

Remember that it is often best to stay the course. Economies are cyclical, and that markets have shown that they will always recover.

Contact details

Kindly contact Bryn Lewis at +27 (82) 893 9112 or John Edwards at +27 (74) 622 8572 or email us for further information at bryn.lewis@psg.co.za or john.edwards@psg.co.za