Investing on the basis of politics, religion and social benefits doesn't make you money, according to Galileo Capital Personal Financial Advisor Warren Ingram.
Consider that last year many South African investors were worried about the country.
By mid-year, the panic was in full force, and people were selling South African assets at a rapid rate.
There was a lot of merit to their concerns.
No one was sure how the battle between Cyril Ramaphosa and Nkosazana Dlamini Zuma was going to pan out.
Immediately after the ANC elected Ramaphosa as its President the country was told that property was going to be expropriated without compensation.
This caused investors to remain on the sidelines with their capital “until things got better”.
In that time a lot has happened:
Steinhoff, the EFF bill in Parliament about EWC, Resilient Group’s price collapse, Turkey, Trump, the EFF siding with ANC in Eastern Cape, etc.
Those investors who sold out and kept their money in cash until things got better, would still be waiting.
In that time, they have probably earned 6.5% interest on their money.
What happened to the JSE?
Since 1 July it’s delivered more than 19%.
Those who sold out and invested their money in US$?
They might have achieved a return of 10% if they were lucky.
Listen to the interview in the audio below.
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