Time in the market, not timing the market, is the investment advice offered by those in know. In the latter case, investors attempt to call the right time to move in and out of the market or switch between asset classes. That's what one investor, call him Jack Green, tried to do. In August 2008, just before the market crash, Green withdrew his retirement savings from the living annuity in which he had invested and from which he was drawing a monthly pension. He had been invested in a multi-asset or balanced unit trust fund exposed to equities, bonds, listed property and cash. He invested instead in a less-risky bond fund. For the next six months, Green felt like a hero: as the global financial crisis took hold, the All Share index fell another 32%, dragging down the balanced fund in which he had been invested; it was nearly 18% down by February 2009. His new bond fund investment was up 8% over the same period. At this point, Green's investment was worth R865,000. Soon the effects of...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.