PODCAST | Investing to outlast global inflation shocks

Strategies for investors to ride out current economic headwinds caused by inflation, energy prices and geopolitical risks are the focus of this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by Sonja Steyn, head of wealth management strategy, private wealth and business management at Consult by Momentum. 

The discussion begins by looking at economic factors that may be worrying investors. 

Steyn says inflation is the nemesis of investments, and in terms of retirement savings, looking at a well-diversified portfolio that offers inflation-beating returns is paramount. “This is necessary to outperform inflation over the long-term, ensuring that value is created over time to sustain future income needs at retirement.”

Join the discussion: 

Steyn says one of the fundamental guides during tough economic times is for investors to stay invested in the market. Despite apparent volatility that tends to worry especially retail investors, markets tend to move upwards over time, with peaks and troughs along the way. 

But to get the full benefit of compounding returns year after year, it requires staying invested even in difficult periods.

Using a sailing analogy, she says the current retirement landscape can be likened to a boat on the ocean. 

“To reach your destination, you’ll need a solid vessel to see you through, as while it’s smooth sailing at times, at other times the waters are tumultuous. The worst thing you can do is to jump ship; you need to sit tight and wait out the storm. Eventually, the waters will calm.”

Topics of discussion include: the biggest risks for investors in the current environment, investment strategies for hedging risk, whether market players see current factors: inflation, oil and geopolitical unrest as short- or long-term issues, if retail investors can win in this environment or is it a game for the big guys, institutional investors, and an outlook for other factors that could affect the market. 

Engage on Twitter at #BDSpotlight

Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Casts | Player.fm

• Business Day Spotlight is a MultimediaLIVE production.