Engage and learn about markets and trading online
30-08-2018 02:34 PM
I'm so disillusioned with the JSE returns that am I seriously considering selling my entire accross the board value share portfolio and putting it all into the Satrix MSCI World ETF. Any comments?
30-08-2018 06:48 PM
I have been slowly building a long-term investment share portfolio for some time now. While I read as much as I can about investment strategies, I have simply adopted an incremental 'learning from doing' approach to investing. It has become increasingly evident to me that I cannot pre-empt - with any degree of confidence - the effects of these continuous global, regional and national upheavals on my share portfolio, simply because in most instances there seems to be no clear logic to, or consistency in, the market response to these changes. I have traded in many of the blue chip 'darlings', and taken punts on 'dogs' with potential - they sometimes go spectacularly up, sometimes precipitously down, but most just seem to bumble along oblivious to the 'market forces' that economists keep shouting about (including EWC). Over time I have got rid of all my individual company shares (too stressful to see the 'bouncing effects'), and have now moved all my money into ETFs (STX40, SYGUS, STX500, SYGWD, SATRIXIND), along with one or two large companies with regional/global footprints (such as ANH). I have found that while this rebalanced portfolio does not give me spectacular returns, it does remove the constant stress of the big market moves asociated with individual shares whenever one or other market is hit with the effects of 'dumb politics' (whether its SA, UK, US or other). Now, even where there is a big impact on one ETF (e.g. STX40), the others typically offset and soften the collective blow. I would say that, over the last 2 years now, my share portfolio has constantly grown, albeit modestly (but far more that CPI), and I stop caring about all the political machinations because they are just short-term 'noise'. All I have to do now is just focus on growing my portfolio with spare cash (increasingly scarce by the day). So yes, in principle I agree with you, but suggest you rather mix it up a little with the ETF portfolio, instead of locking into one. Forget trying to second-guess the individual JSE-listed shares. I have no idea if this helps, or is even sensible, but it (at least for now) works for me.
30-08-2018 08:10 PM
Thanks for your comprehensive reply. I think we are pretty much using the same methodology except I have been attempting to hold on to some optimism for too long now. Time to cut my losses. Satrix World MSCI returning 22% and with the vast range of companies in the fund I think it will have to be a case of a global collapse of markets to make any significant impact. And if they do collapse SA will plummet anyway.
Our long-term low risk money has been in bonds and cash for a few years which has done better than the market so we'll keep most there I think but for my personal high risk ventures I think it's time to call it quits on the SA economy especially as confidence in the country is deteriorating with the current ANC land issues. I foresee a dwindling economy and eventually some form of low-grade failed state as a long-term scenario.
Best of luck!