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Foster Wealth Newsflash | September 2018

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Dear Clients

In the first week of September, news broke that we have entered into a recession for the first time in 9 years.

We can’t deny that this news is disappointing. It certainly has negative impacts on investments and the broader economy in the short term. It puts more pressure on the currency and more pressure on the SARB when it comes to deciding on interest rate hikes. As South African consumers with debt like bonds and car finance we ideally need interest rates to stay where they are, or come down to relieve pressure on our bank accounts.

However if we look at the last week, we can draw hope from the political activity since the good guys are testifying and the bad guys are getting desperate. Through the absolute integrity of people such as Judge Tsoka, Vincent Maleka,and others,  we can be hopeful and we can be proud. If you imagine SA as a stock you were considering putting in your portfolio, it could be argued that now is the time to fill your boots! We are near the bottom, but on our way up, not down!

It is during these tough times, one should review ones financial plan carefully as to avoid making classic emotional mistakes. Contact your financial advisor, sit down and try to be rational. We know it feels like the right thing to do is to sell/buy/switch or anything that involves some action. When it could well be the worst thing to do, instead of staying the course. At Foster we would say stay the course.  Only because the work has been done. and your investments are in portfolios with the best asset managers, you are paying a fair fee and now in order to benefit from that we need you to trust those asset managers over the appropriate time frame.

Thomas Foster 

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“To be trusted is a far greater compliment than being loved" 
– George MacDonald

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