THE GHOST TRAIN
FINANCE GHOST: Finding growth on the JSE
Some great choices that should deliver inflation-beating returns over time
When it comes to equity investing, those looking to follow a buy-and-forget strategy would probably do well to avoid cyclical industries. Many of them don’t offer great through-the-cycle returns and the volatility along the way can be extraordinary. In industries such as mining and paper, it’s all about timing your entry and exit points. Usually, the right approach is to do the exact opposite of what the headlines are suggesting. When times are good and nothing can go wrong, it’s time to sell. Conversely, when everything seems hopeless and no new capital is flowing into that sector, it’s usually time to buckle up and buy.
This strategy clearly isn’t for everyone, especially those who want to enjoy wealth creation without immense stress along the way. The joy of the markets is that there is truly something for everyone out there, including some great choices that should deliver inflation-beating returns over time without sending you to the doctor to increase your blood pressur...
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.