BUSINESS NEWS - Over the past 8 years, global markets have delivered strong annual returns — around 8% to 10% per year. Any investor would be happy with that result.
But those returns didn’t come in a straight line.
There were multiple points where it felt like the market was on the verge of collapse — Brexit, COVID, inflation spikes, US banking stress, wars, tariffs. Each time, markets dropped sharply. And each time, they recovered — often faster than expected.
Every little red ‘X’ in the chart above felt like the world was ending. This is the reality of investing: the path is messy, but over time, the trend is up.
That’s why we design portfolios with this in mind.
For clients who may need access to funds in the next year or two, we set aside enough in cash or low-risk assets, so they’re not forced to sell growth investments during a downturn.
It’s not about avoiding volatility — it’s about being prepared for it.
Chart: MSCI World performance
Because here’s the key point: drawdowns are normal. They’re part of the journey. But holding a diversified portfolio — and staying invested — continues to beat cash over time.
You don’t need to predict the next crash. You just need a plan that makes it easier to hold on when it comes.
Matthew Matthee has a wealth management business that specialises in retirement planning and investments. He writes about financial markets, investments, and investor psychology. He holds a Masters Degree in Economics from Stellenbosch University and a Post Graduate Diploma in Financial Planning from UFS. MatthewM@gravitonwm.com
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