Bear Market Strategy

Last week we witnessed more bad economic news triggered by a combination of high oil prices, falling stock markets, higher inflationary scares and rising risk aversion worldwide. Almost without exception stock market exchanges ended deep in the red last week as record oil prices and global economic concerns continued to erode investor appetite.

Where does this leave you? As we have stated many times, one cannot time the market and it is unwise to start panic-selling your shares or equity unit trusts to try and avoid losses on your investments. Always bear in mind your original investment objectives. Consider buying an investment property: would you sell this property if property prices dropped drastically? Of course not ,as property is an excellent long term investment. In this Communiqué we again reiterate our "time diversification" philosophy as a reminder of the correct investment strategies as proven over time.

Before you invest 'new' money, first consider your investment goal based on when you are actually going to need this money.

Silke Financial Services believes that portfolio diversification is essential to successful investing. We believe in compartmentalising your investments into different strategies so that you can earmark money for different purposes. You should separate your investments into retirement savings [long term], children's education fund [medium to long term], emergency fund and a holiday fund, for example.

Silke Financial Services has the skill and expertise to construct a sound financial plan to cover all your bases.