It is a testament to the enduring appeal and relevance of the message that the phrase lives on. Indeed, resolve and patience are beneficial in many areas of life, none more so than saving and investing. Recent market movements provide an excellent case in point.
The perils of investor panic
Even before US President Donald Trump’s shock tariff announcements on 7 July 2025, there was plenty of pressure on investors to be the opposite of calm. Political uncertainty was high in South Africa and abroad, and war continued in Ukraine and the Middle East.
On the first news of surprisingly high and widespread new tariffs out of Washington, D.C., in April, many investors succumbed and fled the market as share prices plummeted. Many global indices lost 10% in just a few days, wiping out trillions of dollars in market capitalisation. Just a glance at the chart depicting this fall might send shivers down the spine.
But that reflects a short-term perspective. Most investors are interested in years and decades rather than days and weeks. The one-year chart tells a different, more informative, story.
Keep calm and prosper
To panic during that first week of April 2025 and get out of the market was to lock in losses. To keep calm and carry on was to ride out the shock and benefit from the recovery.
The slogan endures for a reason. It captures a fundamental virtue that pays dividends both in life and investing. To put it in terms we use frequently: time in the market beats timing the market.
What do we mean by “the market” in this context? The MSCI World Index is representative of “the market” as far as major global equities go. It holds 1 325 large and mid-sized companies from 23 developed nations.
Our 1nvest MSCI World Index Feeder Fund ETF mimics and tracks the performance of the MSCI World Index. Containing major international shares such as Nvidia, Tesla, and Berkshire Hathaway, it’s a simple, cost-effective way to invest internationally with a South African-based ETF.
To find out more about this index-tracking fund or to incorporate this powerful tool into your portfolio, ask your financial advisor.
Collective Investment Schemes (CIS) are generally medium- to long-term investments. The value of participatory interests may go down as well as up. Past performance is not necessarily a guide to future performance. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and maximum commissions is available on request from the manager. The manager does not provide any guarantee with respect to the capital or the return of a CIS portfolio. These portfolios are third-party-named incubator portfolios. The manager retains full legal responsibility for these portfolios.
1nvest Fund Managers (Pty) Ltd is an authorised financial services provider (FSP), FSP No. 49955, under the Financial Advisory and Intermediary Services Act (FAIS), Act No. 37 of 2002. The manager of the Schemes is STANLIB Collective Investments (RF) Pty Ltd and registered in terms of CISCA. For the basis and information on awards and rankings, please contact [email protected].
