Navigating the impact of world events on your investments
Allan Gray Unit Trust Management
Q1 of 2023 | 1 year ago
While there might be numerous causal factors behind each market downturn, a defining feature of market crashes is the panic sell-off caused by fear, negative outlook and human psychology. Events like the COVID-19 pandemic and the war in Ukraine combine with fear and herd mentality to create a selling frenzy in which investors offload seemingly risky assets, causing prices to crash. At the same time, many investors seek to switch to perceived safe-haven assets (e.g. cash and gold), which may not be in your best long-term interests, and you may land up locking in losses.
Navigating the impact of world events on your investments
Allan Gray Unit Trust Management
Q1 of 2023 | 1 year ago
While there might be numerous causal factors behind each market downturn, a defining feature of market crashes is the panic sell-off caused by fear, negative outlook and human psychology. Events like the COVID-19 pandemic and the war in Ukraine combine with fear and herd mentality to create a selling frenzy in which investors offload seemingly risky assets, causing prices to crash. At the same time, many investors seek to switch to perceived safe-haven assets (e.g. cash and gold), which may not be in your best long-term interests, and you may land up locking in losses.
