MyMoney Online

The JSE is trading near all-time highs. Should you sell while the going is good?

(Click here to learn how to protect your wealth when the JSE is falling.)

The economy is quite tepid, yet the Johannesburg Stock Exchange is trading near an all-time high.

Does this make sense? Should we sell our shares before the market corrects? Absolutely not, reckons Warren Ingram, Financial Advisor at Galileo Capital.

Here are five reasons why Ingram isn’t selling any shares (despite them seeming exorbitantly overpriced):

  1. Cash returns are lousy (it almost never beats inflation).

  2. Offshore investments are problematic because of the weak rand (and it’s not as though international markets offer excellent value anyways).

  3. Listed property is expensive.

  4. Almost nobody ever times the market correctly.

  5. Dividends account for a significant proportion, up to 50 percent, of total returns.

“There just isn’t a better option right now than to stay in the market,” says Ingram. “Even if the market crashes tomorrow it won't mean the companies you’re invested in will cease to exist."

Listen to the audio for more detail.

(Click here to learn how to protect your wealth when the JSE is falling.)


This article first appeared on 702 : The JSE is trading near all-time highs. Should you sell while the going is good?


Recommended

by THE NEWSROOM

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Why Sasol is a great investment (it’s because of, NOT despite, the oil price)

Why Sasol is a great investment (it’s because of, NOT despite, the oil price)

The market seems to believe oil will stay cheap forever. It can’t. And right now Sasol shares are very, very cheap.

Equity analyst discusses why you should buy Mediclinic, Discovery and Shoprite

Equity analyst discusses why you should buy Mediclinic, Discovery and Shoprite

Looking for a few hot stocks to invest in? These three companies are where it’s at, says Kruger International's Mia Kruger.

Buy Sasol shares (despite very cheap oil) – market analyst

Buy Sasol shares (despite very cheap oil) – market analyst

Sasol shares are an excellent investment because of (not despite!) oil prices that won’t stay this low forever.

Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Naspers is expensive, but geared for growth. Ashburton Investments’ Nick Crail on why you should just be brave and buy its shares.

How once tiny Afrikaans publisher Naspers became an emerging market juggernaut

How once tiny Afrikaans publisher Naspers became an emerging market juggernaut

Bruce Whitfield speaks to historian Professor Lizette Rabe about the story of the Nasionale Pers.

How to protect your wealth when the JSE is falling

How to protect your wealth when the JSE is falling

How to protect your wealth should the JSE start to weaken...

How to grow your bank balance (not your waistline!) with Burger King

How to grow your bank balance (not your waistline!) with Burger King

Grand Parade Investments, one of the JSE’s hottest shares, struck gold by bringing Burger King to SA, says Sanlam’s Gerhard Lampen.

4 beliefs about shares that keep you from growing wealthy

4 beliefs about shares that keep you from growing wealthy

4 popular, yet patently false, beliefs about stock market investing that's holding you back.

Popular articles
Social media give President Ramaphosa the nod

Social media give President Ramaphosa the nod

Social media reacts with love and hope to President Ramaphosa's maiden State Of the Nation Address.

‘Maimane, Malema will find Ramaphosa harder to deal with than easy-target Zuma’

‘Maimane, Malema will find Ramaphosa harder to deal with than easy-target Zuma’

Afternoon Drive’s Stephen Grootes interviews Senior Research Associate at the Institute for Security Studies Judith February.

EFF's walk out was bizarre - Baleka Mbete

EFF's walk out was bizarre - Baleka Mbete

Speaker of Parliament Baleka Mbete shares her views on the future of Parliament and the readiness for Sona 2018

Hawks video shows fugitive Ajay Gupta leaving SA

Hawks video shows fugitive Ajay Gupta leaving SA

The Hawks are in possession of video footage showing Gupta, wanted in connection with Vrede dairy farm scandal, leaving SA.

Hope Ramaphosa: Cyril never lifted a finger to me, he wouldn't beat a woman

Hope Ramaphosa: Cyril never lifted a finger to me, he wouldn't beat a woman

Cyril Ramaphosa's ex-wife says abuse allegations spread by EFF leader Julius Malema are an attempt to tarnish his reputation.