7 lessons that will reshape your future

By Graham Tucker, Fund Manager within Old Mutual Investment Group’s MacroSolutions team

You’ve heard it before: sticking you’re your long-term savings plan is one of the surest paths to a more comfortable retirement.  The fear of losing money often drives investors to sell out of the market and opt, instead, for the perceived safety (see lesson 2) of a bank account.

This was particularly relevant in 2017, as local political turbulence appeared to reach fresh highs – making it extremely easy to get caught up in the negativity. In fact, seldom has a year highlighted the importance of keeping a long-term focus in mind better than 2017.  In the first half, equity markets continued tracking sideways and made “risk-free” bank accounts look attractive. However, the strong rally later in the year meant SA equity delivered 21% in 2017 – its best annual return since 2013.

As multi-asset class fund managers, we invest across a wide range of local and global asset classes. To do this, we require an in-depth knowledge of what drives each of these asset classes, especially over the long term. In scrutinising the performance and behaviour of asset classes over the past 88 or more years we identified valuable lessons to help build a resilient investment plan.

These lessons shape the key principles of our investment philosophy and have contributed to the success of our multi-asset class funds. We would like to share these with you.

Lesson to shape your {long-term} thinking

If any of these lessons resonated with you and you’d like to find out more about the long-term history of local and global asset classes, click here for to read our LONG-TERM PERSPECTIVES 2018 yearbook.

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