the less tangible components like equities and debt , to more tangible holdings like real estate , land , gold and other valuable items , like art or collectibles .
“ When all is said and done , possibly the most valuable action you can take when the markets are declining is to call up a 20-year line chart of any bourse or index , enlarge it to fill your computer screen , and then take two large steps backwards .”
This is arguably the best way of reminding yourself that volatility is something that markets have experienced , and dealt with throughout their existence . Stepping back always provides perspective . The current decline is not as disastrous as you think it is and the markets , as well as your portfolio , will recover over time . The best thing you can do is simply to allow them to do so .
While these tangible assets are often less liquid than a stock portfolio , their value is also unrelated to the share markets , which makes them an excellent long-term cushion against shortterm market swings .
Tracy Afonso Executive : Private Clients Nedbank
SA Real Estate Investor Magazine SEPTEMBER 2022 71