The first quarter of the year is now behind us and it’s been a difficult year so far for investors. In fact, the first quarter has been the third-worst quarter for investors since the global financial crisis about a decade ago. Global markets and local markets have slipped, the rand has strengthened and there has been a sharp fall in the local listed property sector. Interestingly, these events have been against a more positive background for SA: encouraging political developments, an interest rate cut and a favourable ratings decision from Moody’s Investors Service recently. When markets are not performing as investors had hoped for they find it difficult to stick to their investment strategy. Financial services market research firm DALBAR conducted a study of investors in US equity funds. In 2016, the average equity fund investor underperformed the overall market almost 5%. However, over the preceding 20 years the underperformance was almost 3% a year. The inability of investors t...

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