Long-term Perspectives 2019

14 Mar 2019

Long-Term Perspectives

Download MacroSolutions Long-Term Perspectives 2019

With the primary aim of investors being to save for long-term goals, the objective of Long-Term Perspectives is to draw attention to the long-term behaviour of asset classes and, in so doing, provide perspective on the shorter-term volatility.  What you can expect to find this this publication:

8 Long Term Lessons - Peter Brooke

In analysing long-term data, we identified 8 valuable lessons to help build a resilient investment plans. Understanding these lessons will help you build the right investment solution to achieve your goals.

The Macrosolutions Balanced Index - Graham Tucker

Given that the majority of South Africans’ savings are in multi-asset class portfolios, our MacroSolutions Balanced Index, dating back to 1930, is a good measure of what the average investor experienced.

Diversification - Graham Tucker

After time, diversification is the second most valuable tool you can use to manage risk. See how it reduces the impact of a single poorly performing asset.

SA Inflation - Johann Els

Take a look at just how destructive inflation is over time. This is why we look at our long-term investment returns in real terms (which strips out the impact of inflation).

SA Equity - Graham Tucker

To counter the effects of inflation and low-return investments, you need the higher growth potential of equities − SA’s top asset class 42 out of 89 years.

SA Listed Property - Evan Robins

This once-tiny sector is an important and a distinct asset class in its own right - offering both capital growth and a stable and growing income component.

SA Bonds - Zain Wilson

Bond market returns are particularly sensitive to event and policy risk, reinforcing why a long-term macro perspective is so critical.

SA Cash - John Orford

While there is minimal risk of losing money when investing in cash, it is not without risks – as can be seen in how long it takes to double the real (after inflation) value of your money.

Gold - Denzil Burger

Gold plays an important role within a diversified portfolio, as it offers a hedge against inflation and protection against economic turmoil.

The Rand - Johann Els

Investors need to understand the profound effect the exchange rate has on investment values, given its impact on inflation and that it is used to translate the returns of global assets into local currency returns.

Global Assets - Graham Tucker

Investing globally remains a powerful source of diversification and risk reduction. 

Global Equity - Urvesh Desai

As one of our preferred asset class, global equity provides an alternative source of growth to more risky SA equity.

Global Bonds - Zain Wilson

Given their low correlation to equities, developed market government bonds are an important means of enhancing diversification. 

Long-term Real Returns Outlook - Peter Brooke

Our medium-term (five-year) outlook for all the major asset classes influences our strategic and tactical investment decisions.

To see how the MacroSolutions Balanced Index has performed over time and to better understand the behaviour of local and global asset classes, read the 2019 Edition of Long-term Perspectives.

If you would like to receive the historical index series please send us a request via our contact page.

  • MacroSolutions
  • Long-term Perspectives