Investing when emotions are running high in a turbulent SA
Amid the turn in the SA economy, investors should be very careful not to panic and take steps that could be detrimental to their portfolios in the long run.
Amid the turn in the SA economy, investors should be very careful not to panic and take steps that could be detrimental to their portfolios in the long run.
In this Investing Masterclass, we find out from PSG fund managers Paul Bosman and Greg Hopkins how they manage to consistently outperform.
PSG’s Philipp Wörz explains how mispriced quality in the market is identified and the benefits of investing off-shore.
In essence, the 3M’s (Moat, Management and Margin of Safety) look for investments that are trading at discounts to their inherent intrinsic values.
Asset consultants typically advise investors to minimise cash holdings in multi-asset mandates whenever possible, citing the low long-term average returns achieved by cash relative to the other asset classes.
Constantly assessing the risks and returns of individual investment opportunities and being flexible are central to successful investing.
South African investors are familiar with the equity market, but fixed income investments (or bonds) tend to attract less attention.
South African investors are feeling saturated with bad news particularly with regard to their equity investments. What seems to get less attention is fixed income investments where the news is more positive.
Greg Hopkins speaks about equity markets, the economic outlook for South Africa and the successful methodology used by the PSG Asset Management team.
Fund managers are emotional beings and therefore we need to have measures in place to ensure that we remain rational when those dark clouds gather.