Ongoing tariff disputes following President Trump’s “Liberation Day” announcement and native political uncertainty could tempt buyers to shift to lower-risk belongings or disinvest. However earlier than making a panicked transfer, pause and mirror on classes from previous durations of uncertainty, says Stephan Bernard, an analyst at Allan Grey.
When Covid-19 disrupted world markets, buyers questioned the worth of previous downturns, given the novel nature of the disaster. Market declines have been similar to the Nice Melancholy. Asset courses fell in unison, offering few secure havens. Fearing financial collapse, many needed to exit equities – however those that stayed the course have been finally rewarded as markets stabilised.
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Towards this, under are key classes to assist buyers navigate at present’s market turmoil.
Lesson 1: Keep away from making fear-driven choices
Whereas extreme downturns naturally evoke fears of everlasting harm, historical past reveals that markets finally rebound, typically robustly. This doesn’t suggest that disruption requires no response, however moderately that buyers ought to keep away from making fear-driven choices.
Lesson 2: Stay invested in periods of uncertainty
As arduous as it might really feel, remaining invested via durations of volatility and uncertainty, and never giving in to the temptation to comply with perceived security, ensures participation in recoveries, that are necessary drivers of long-term returns.
Graph 1 reveals the full return index of South African equities, highlighting market drawdowns for the reason that dot-com bubble of the late Nineties. Throughout each disaster, the prevailing pessimism following vital market declines makes engaging potential returns really feel extremely unlikely. And but, over time, the market rises to surpass the earlier high-water mark (the purple areas).
The sell-off in April 2025, as mirrored by the 11% drawdown within the South African fairness market, was not extreme contemplating the excessive base established by the sturdy efficiency of native equities all through 2024 and the primary quarter of 2025. The drawdown was additionally not exceptionally massive relative to historical past, as proven in Graph 2, and a fairly swift restoration occurred.
But, uncertainty persists, with coverage shifts threatening market disruption, sluggish progress, and excessive inflation. The street forward should still be bumpy.
Lesson 3: Defend your capital by not overestimating likelihood of losses
Overestimating the likelihood or the extent of losses throughout market turbulence can lead you astray. To acquire a sensible view, put present occasions, and your related discomfort into perspective by taking a look at how your investments have responded to comparable occasions.
I consider {that a} good method throughout such durations is to keep away from everlasting capital loss via disciplined, valuation-based investing.
Analysis reveals that over time, the good thing about limiting losses in weaker markets (down months) typically compounds meaningfully.
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Lesson 4: Give attention to belongings with a robust margin of security
Intervals of heightened uncertainty reinforce the significance of investing in belongings priced under their intrinsic worth. A robust margin of security – the hole between what an asset is value and what you’re paying – affords a buffer towards market volatility.
This method, paired with a deep aversion to everlasting capital loss, acts as a danger administration instrument and stays a precept for long-term buyers. In case you have discovered an funding supervisor with a observe report to make your asset allocation choices, you possibly can sleep slightly simpler in periods of volatility.
Lesson 5: Reply to uncertainty provided that your private circumstances change
Earlier than making adjustments to your portfolio, take into account whether or not your private circumstances, funding targets, or time horizon have shifted. In the event that they haven’t, staying the course would be the wiser selection.
Historical past reveals that long-term worth is usually constructed by investing via uncertainty — not by reacting to it. Staying targeted in your long-term technique is vital.
But, uncertainty persists, with coverage shifts threatening market disruption, sluggish progress, and excessive inflation. The street forward should still be bumpy.
Stephan Bernard, an analyst at Allan Grey.
Comply with Moneyweb’s in-depth finance and enterprise information on WhatsApp right here.
Ongoing tariff disputes following President Trump’s “Liberation Day” announcement and native political uncertainty could tempt buyers to shift to lower-risk belongings or disinvest. However earlier than making a panicked transfer, pause and mirror on classes from previous durations of uncertainty, says Stephan Bernard, an analyst at Allan Grey.
When Covid-19 disrupted world markets, buyers questioned the worth of previous downturns, given the novel nature of the disaster. Market declines have been similar to the Nice Melancholy. Asset courses fell in unison, offering few secure havens. Fearing financial collapse, many needed to exit equities – however those that stayed the course have been finally rewarded as markets stabilised.
ADVERTISEMENT
CONTINUE READING BELOW
Towards this, under are key classes to assist buyers navigate at present’s market turmoil.
Lesson 1: Keep away from making fear-driven choices
Whereas extreme downturns naturally evoke fears of everlasting harm, historical past reveals that markets finally rebound, typically robustly. This doesn’t suggest that disruption requires no response, however moderately that buyers ought to keep away from making fear-driven choices.
Lesson 2: Stay invested in periods of uncertainty
As arduous as it might really feel, remaining invested via durations of volatility and uncertainty, and never giving in to the temptation to comply with perceived security, ensures participation in recoveries, that are necessary drivers of long-term returns.
Graph 1 reveals the full return index of South African equities, highlighting market drawdowns for the reason that dot-com bubble of the late Nineties. Throughout each disaster, the prevailing pessimism following vital market declines makes engaging potential returns really feel extremely unlikely. And but, over time, the market rises to surpass the earlier high-water mark (the purple areas).
The sell-off in April 2025, as mirrored by the 11% drawdown within the South African fairness market, was not extreme contemplating the excessive base established by the sturdy efficiency of native equities all through 2024 and the primary quarter of 2025. The drawdown was additionally not exceptionally massive relative to historical past, as proven in Graph 2, and a fairly swift restoration occurred.
But, uncertainty persists, with coverage shifts threatening market disruption, sluggish progress, and excessive inflation. The street forward should still be bumpy.
Lesson 3: Defend your capital by not overestimating likelihood of losses
Overestimating the likelihood or the extent of losses throughout market turbulence can lead you astray. To acquire a sensible view, put present occasions, and your related discomfort into perspective by taking a look at how your investments have responded to comparable occasions.
I consider {that a} good method throughout such durations is to keep away from everlasting capital loss via disciplined, valuation-based investing.
Analysis reveals that over time, the good thing about limiting losses in weaker markets (down months) typically compounds meaningfully.
ADVERTISEMENT:
CONTINUE READING BELOW
Lesson 4: Give attention to belongings with a robust margin of security
Intervals of heightened uncertainty reinforce the significance of investing in belongings priced under their intrinsic worth. A robust margin of security – the hole between what an asset is value and what you’re paying – affords a buffer towards market volatility.
This method, paired with a deep aversion to everlasting capital loss, acts as a danger administration instrument and stays a precept for long-term buyers. In case you have discovered an funding supervisor with a observe report to make your asset allocation choices, you possibly can sleep slightly simpler in periods of volatility.
Lesson 5: Reply to uncertainty provided that your private circumstances change
Earlier than making adjustments to your portfolio, take into account whether or not your private circumstances, funding targets, or time horizon have shifted. In the event that they haven’t, staying the course would be the wiser selection.
Historical past reveals that long-term worth is usually constructed by investing via uncertainty — not by reacting to it. Staying targeted in your long-term technique is vital.
But, uncertainty persists, with coverage shifts threatening market disruption, sluggish progress, and excessive inflation. The street forward should still be bumpy.
Stephan Bernard, an analyst at Allan Grey.
Comply with Moneyweb’s in-depth finance and enterprise information on WhatsApp right here.
Ongoing tariff disputes following President Trump’s “Liberation Day” announcement and native political uncertainty could tempt buyers to shift to lower-risk belongings or disinvest. However earlier than making a panicked transfer, pause and mirror on classes from previous durations of uncertainty, says Stephan Bernard, an analyst at Allan Grey.
When Covid-19 disrupted world markets, buyers questioned the worth of previous downturns, given the novel nature of the disaster. Market declines have been similar to the Nice Melancholy. Asset courses fell in unison, offering few secure havens. Fearing financial collapse, many needed to exit equities – however those that stayed the course have been finally rewarded as markets stabilised.
ADVERTISEMENT
CONTINUE READING BELOW
Towards this, under are key classes to assist buyers navigate at present’s market turmoil.
Lesson 1: Keep away from making fear-driven choices
Whereas extreme downturns naturally evoke fears of everlasting harm, historical past reveals that markets finally rebound, typically robustly. This doesn’t suggest that disruption requires no response, however moderately that buyers ought to keep away from making fear-driven choices.
Lesson 2: Stay invested in periods of uncertainty
As arduous as it might really feel, remaining invested via durations of volatility and uncertainty, and never giving in to the temptation to comply with perceived security, ensures participation in recoveries, that are necessary drivers of long-term returns.
Graph 1 reveals the full return index of South African equities, highlighting market drawdowns for the reason that dot-com bubble of the late Nineties. Throughout each disaster, the prevailing pessimism following vital market declines makes engaging potential returns really feel extremely unlikely. And but, over time, the market rises to surpass the earlier high-water mark (the purple areas).
The sell-off in April 2025, as mirrored by the 11% drawdown within the South African fairness market, was not extreme contemplating the excessive base established by the sturdy efficiency of native equities all through 2024 and the primary quarter of 2025. The drawdown was additionally not exceptionally massive relative to historical past, as proven in Graph 2, and a fairly swift restoration occurred.
But, uncertainty persists, with coverage shifts threatening market disruption, sluggish progress, and excessive inflation. The street forward should still be bumpy.
Lesson 3: Defend your capital by not overestimating likelihood of losses
Overestimating the likelihood or the extent of losses throughout market turbulence can lead you astray. To acquire a sensible view, put present occasions, and your related discomfort into perspective by taking a look at how your investments have responded to comparable occasions.
I consider {that a} good method throughout such durations is to keep away from everlasting capital loss via disciplined, valuation-based investing.
Analysis reveals that over time, the good thing about limiting losses in weaker markets (down months) typically compounds meaningfully.
ADVERTISEMENT:
CONTINUE READING BELOW
Lesson 4: Give attention to belongings with a robust margin of security
Intervals of heightened uncertainty reinforce the significance of investing in belongings priced under their intrinsic worth. A robust margin of security – the hole between what an asset is value and what you’re paying – affords a buffer towards market volatility.
This method, paired with a deep aversion to everlasting capital loss, acts as a danger administration instrument and stays a precept for long-term buyers. In case you have discovered an funding supervisor with a observe report to make your asset allocation choices, you possibly can sleep slightly simpler in periods of volatility.
Lesson 5: Reply to uncertainty provided that your private circumstances change
Earlier than making adjustments to your portfolio, take into account whether or not your private circumstances, funding targets, or time horizon have shifted. In the event that they haven’t, staying the course would be the wiser selection.
Historical past reveals that long-term worth is usually constructed by investing via uncertainty — not by reacting to it. Staying targeted in your long-term technique is vital.
But, uncertainty persists, with coverage shifts threatening market disruption, sluggish progress, and excessive inflation. The street forward should still be bumpy.
Stephan Bernard, an analyst at Allan Grey.
Comply with Moneyweb’s in-depth finance and enterprise information on WhatsApp right here.
Ongoing tariff disputes following President Trump’s “Liberation Day” announcement and native political uncertainty could tempt buyers to shift to lower-risk belongings or disinvest. However earlier than making a panicked transfer, pause and mirror on classes from previous durations of uncertainty, says Stephan Bernard, an analyst at Allan Grey.
When Covid-19 disrupted world markets, buyers questioned the worth of previous downturns, given the novel nature of the disaster. Market declines have been similar to the Nice Melancholy. Asset courses fell in unison, offering few secure havens. Fearing financial collapse, many needed to exit equities – however those that stayed the course have been finally rewarded as markets stabilised.
ADVERTISEMENT
CONTINUE READING BELOW
Towards this, under are key classes to assist buyers navigate at present’s market turmoil.
Lesson 1: Keep away from making fear-driven choices
Whereas extreme downturns naturally evoke fears of everlasting harm, historical past reveals that markets finally rebound, typically robustly. This doesn’t suggest that disruption requires no response, however moderately that buyers ought to keep away from making fear-driven choices.
Lesson 2: Stay invested in periods of uncertainty
As arduous as it might really feel, remaining invested via durations of volatility and uncertainty, and never giving in to the temptation to comply with perceived security, ensures participation in recoveries, that are necessary drivers of long-term returns.
Graph 1 reveals the full return index of South African equities, highlighting market drawdowns for the reason that dot-com bubble of the late Nineties. Throughout each disaster, the prevailing pessimism following vital market declines makes engaging potential returns really feel extremely unlikely. And but, over time, the market rises to surpass the earlier high-water mark (the purple areas).
The sell-off in April 2025, as mirrored by the 11% drawdown within the South African fairness market, was not extreme contemplating the excessive base established by the sturdy efficiency of native equities all through 2024 and the primary quarter of 2025. The drawdown was additionally not exceptionally massive relative to historical past, as proven in Graph 2, and a fairly swift restoration occurred.
But, uncertainty persists, with coverage shifts threatening market disruption, sluggish progress, and excessive inflation. The street forward should still be bumpy.
Lesson 3: Defend your capital by not overestimating likelihood of losses
Overestimating the likelihood or the extent of losses throughout market turbulence can lead you astray. To acquire a sensible view, put present occasions, and your related discomfort into perspective by taking a look at how your investments have responded to comparable occasions.
I consider {that a} good method throughout such durations is to keep away from everlasting capital loss via disciplined, valuation-based investing.
Analysis reveals that over time, the good thing about limiting losses in weaker markets (down months) typically compounds meaningfully.
ADVERTISEMENT:
CONTINUE READING BELOW
Lesson 4: Give attention to belongings with a robust margin of security
Intervals of heightened uncertainty reinforce the significance of investing in belongings priced under their intrinsic worth. A robust margin of security – the hole between what an asset is value and what you’re paying – affords a buffer towards market volatility.
This method, paired with a deep aversion to everlasting capital loss, acts as a danger administration instrument and stays a precept for long-term buyers. In case you have discovered an funding supervisor with a observe report to make your asset allocation choices, you possibly can sleep slightly simpler in periods of volatility.
Lesson 5: Reply to uncertainty provided that your private circumstances change
Earlier than making adjustments to your portfolio, take into account whether or not your private circumstances, funding targets, or time horizon have shifted. In the event that they haven’t, staying the course would be the wiser selection.
Historical past reveals that long-term worth is usually constructed by investing via uncertainty — not by reacting to it. Staying targeted in your long-term technique is vital.
But, uncertainty persists, with coverage shifts threatening market disruption, sluggish progress, and excessive inflation. The street forward should still be bumpy.
Stephan Bernard, an analyst at Allan Grey.
Comply with Moneyweb’s in-depth finance and enterprise information on WhatsApp right here.
