Let’s be honest…most investors are more than a little worked up after the bad returns of the last 3 years. This becomes an especially long time to be patient when you receive investment statements on a quarterly basis. See the below table showing the annual returns for the 8 main asset classes over the last 24 years and the notes that follow.
The temptation to stir your investment pot now, or worse, remove or completely change the ingredients, is huge. We know from experience that this normally leads to worse outcomes for investors but no matter how many articles are written on the subject people simply do not believe it. There is always a reason or a story why this time is different.
Now what exactly am I trying to tell you? Like uncle Jan told me this morning with his annual review, “one must not be too vague either.” A regular reader of this column would know that I think forecasting is dangerous and have some entertainment value at best but for what it is worth I will try my hand at forecasting the expected ranking (not returns) for the asset classes for 2019. For context I add the 2018 raking.
Take note of this forecast for 2019 at own risk because as I have said, forecasting is for the brave and the foolish.
All the best for the last bit of 2019 remaining!
Although all possible care was taken in the drafting of this document, the factual correctness of the information contained herein cannot be guaranteed. This document does not constitute advice and anyone planning on taking any financial action based on this document, is strongly advised to first consult with their personal financial advisor. ProVérte Wealth & Risk Management is an authorised financial service provider with FSP no. 5966.
True to company culture, Samuel strives to build solid long term relationships with clients and has a meticulous way of identifying needs, defining goals and compiling an executable plan to reach one's goals. He firmly believes that one has to be a specialist in one's field to be able to add value, and continuous training & education is therefore paramount. To be objective and to have an independent approach to a client's planning is critical to make a difference.
Born & bred on a farm in the Montague region, Samuel matriculated in 2001 from Montague High School. He completed his BComm Honours degree in Business Management as well as his Postgraduate & Advanced Diploma in Financial Planning. Samuel is a CFP charter holder. Apart from a short stint at an agricultural company Samuel has spent his whole working career with ProVérte. Samuel is a shareholder and valuable member of the board of directors of ProVérte.