Cape Town - Investors tend to panic in times of market volatility, economic turmoil and political uncertainty, often resulting in knee-jerk investment decisions that are seldom sensible, cautions Peter Dempsey, deputy CEO of the Association for Savings and Investment South Africa (Asisa).
“It’s important to recognise that times are tough both locally and globally, and that every country has its own problems," he explains. In his view, seeking guidance from a trusted financial adviser is more critical than ever in difficult market conditions.
"The role of an adviser is to guide you through the noise and help you to make the best decisions for your unique circumstances,” he says.
According to Dempsey, in volatile times investors are particularly prone to making impulsive decisions, driven by some common mistakes and behaviours that could destroy huge amounts of value in an investment portfolio. These include: