Despite the lingering uncertainty in markets following the effects of the global financial crisis of 2008 onwards, there are some signs that economies are starting to improve. Well that seems to be the case in the developed markets with the US leading the way despite self-created problems which have resulted in governmental log jams. By contrast emerging markets, China included, have slowed down but nevertheless are still showing positive growth. If the trend continues in the developed world, it can only be a matter of time before the emerging one follows suit.
So what should you do as regards investment strategy? With interest rates generally low it is no good staying on the side lines. A strategy which involves “diversification” of assets is the answer. This means that investments should not only be spread across different asset classes, such as equities, bonds , property and alternatives, consideration should also be given to significant offshore investing too.
South Africans now have a great deal of freedom to invest abroad not only by using the current exchange control allowances which are virtually unlimited for the average investor but also through Rand denominated offshore investments. In this way investors can build up a diversified global portfolio managed by leading asset management companies. By doing so, investors can add a very important diversification away from what are generally predominantly SA based investments.
Please contact us for more information on how you can go about diversifying your portfolio.