Wednesday, 25 May 2016 - 20:00
Seed Weekly - Fear and Greed
Fear and greed are unfortunately the two emotions which drive most investor’s behaviour. My job as a Financial Advisor is to try and dilute this unhealthy situation by adding a good measure of rational thinking. Unfortunately the more fear or greed we experience, the more rational our arguments will appear to ourselves.
One of the most common mistakes that people make is greed. This happens when we look at the Sunday papers and we see last year’s best performing fund. The average investor’s immediate reaction is “I need a bit of that action; I need to get into that fund as quickly as possible”. Obviously, in a years’ time that fund is not going to be the best performing unit trust and now you want to “get out of that fund as quickly as possible and move to the next year’s best performing fund”. I have often used the statement that “only using past performance to select funds is like driving whilst only looking in your rear view mirror, it is going to cause an accident”.
I am constantly amazed at how otherwise rational people (Engineers and Accountants especially), can forget three or even five years of good performance and will suddenly start panicking and want to move everything into cash as soon as the market has moved sideways for a year or two. (My previous cash is king article expands on this).
Financial planning is exactly what it says, you need to have a plan and you need to stick to it, chopping and changing the whole time will only lead to heartache. “Panic sellers” will always wait too long for their greed to override their fear and can never time their market re-entrance. They will always lose out on the biggest upswings after the bottom.
If your fund has a 3 year benchmark, then measure it over three years. It is pointless selecting funds with a five year time horizon in mind and then changing those funds because of one year’s underperformance. If nothing has changed with the underlying Manager, mandate, process etc. and you are wanting to switch managers because of short term underperformance, you seriously need to relook at your fund selection process.
The importance of having a financial plan which incorporates your needs, goals, time frames and special circumstances cannot be over-emphasized. Your financial plan is what keeps your decisions within a rational framework and negates the negative impact of fear and greed.
Tel +27 21 914 4966
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Wed, 25 May 2016
The financial results for the year ended 28 February 2015 have been restated as a result of the sale of Turbo Zambia and the closing of Turbo DRC (hereinafter referred to as the ˘discontinued operations÷).
As a result of the discontinued operations,. . .
On the recommendation of the Nomination Committee, the board of directors of the company (˘the Board÷) has resolved to appoint Mr Theunis de Bruyn as a non-executive director with effect from 15 June 2016.
The board wishes to extend a welcome to. . .
World Markets (Spot Prices)
|JSE Top 40||17:00||47727.26||693.49||1.47%|
|JSE Indust 25||17:00||72866.83||768.75||1.07%|
|USD / ZAR||19:59||15.6633||0.0068||0.04%|
|GBP / ZAR||19:55||23.0040||0.1331||0.58%|
|AUD / ZAR||19:55||11.2745||0.0176||0.16%|
|USD / JPY||19:59||110.2080||0.2340||0.21%|
|EUR / USD||19:59||1.1161||0.0021||0.18%|
|GBP / USD||19:59||1.4703||0.0082||0.56%|
Click here for the Sharenet Spot Price page
The JSE Today
* Includes all listed instruments on the JSE
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||75,639.56||1002.43||1.34%|
|Oil & Gas ||7,195.69||.00||0.00%|
|Oil & Gas Producers ||38,689.88||.00||0.00%|
|Basic Materials ||22,343.78||325.91||1.48%|
|Forestry & Paper ||54,019.22||544.73||1.02%|
|Industrial Metals ||6,301.32||50.50||0.81%|
|General Industrials ||155.52||3.20||2.10%|
|Consumer Goods ||81,897.94||882.13||1.09%|
|Automobiles & Parts ||4,959.16||-54.35||-1.08%|
|Health Care ||9,407.01||105.98||1.14%|
|Index Name||RP||Move||% Move|
|Food Producers ||8,844.22||3.52||0.04%|
|Personal Goods ||913.77||12.99||1.44%|
|Consumer Services ||18,249.22||137.79||0.76%|
|General Retailers ||7,644.16||38.10||0.50%|
|Travel & Leisure ||5,603.35||246.60||4.60%|
|Support Services ||2,128.88||-8.46||-0.40%|
|Non-life Insurance ||58,956.30||510.44||0.87%|
|Life Insurance ||39,402.17||858.63||2.23%|
|General Financial ||4,700.63||87.14||1.89%|
|SHARIAH TOP40 ||3,132.30||55||1.79%|
|FTSE/JSE SHARIAH ALL||3,412.28||45||1.34%|
|FTSE JSE Fledgling ||7,000.89||-46||-0.66%|
|FTSE/JSE Alt X ||1,503.67||17||1.15%|
|SA LISTED PROPERTY ||647.63||3.68||0.57%|
|CAPPED PROPERTY ||577.10||0.87%|
|FTSE/JSE RAFI 40||9,519.99||150||1.60%|
|Capped Top 40||25,296.32||386||1.55%|
|Capped All Share||27,323.27||347||1.29%|
|JSE TABACO ||12,303.02||145||1.19%|
Click here for the Sharenet Index Summary page
Latest Consensus Changes**
|PFG||PIONEER FOODS GROUP LTD||HOLD||24/05/2016|
|VOD||VODACOM GROUP LIMITED||HOLD||24/05/2016|
|RMH||RMB HOLDINGS LIMITED||BUY||23/05/2016||
|Expected||Company Name||Fin. Date|
|26/05/2016||ACSION||February 2016 (Final)|
|26/05/2016||JUBILEE||June 2015 (Final)|
|26/05/2016||MICROMEGA||March 2016 (Final)|
|26/05/2016||MIXTEL||March 2016 (Final)|
|26/05/2016||QUANTUM||March 2016 (Interim)|
|ACL||ArcelorMittal South Africa Ltd.||25/05/2016||Confirmed|
|MLAP||ArcelorMittal South Africa Ltd.||25/05/2016||Confirmed|
|MTN||MTN Group Ltd.||25/05/2016||Confirmed|
|ERN||Erin Energy Corporation||25/05/2016||Confirmed|
|AFX||African Oxygen Ltd.||26/05/2016||Confirmed||
Stock Exchange News Service
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