Don't panic Dan. Rough markets hit about once a decade. Overseas is not necessarily the answer - global markets have had poor returns too and arguably may have further to fall than our already beaten down assortment.
Some suggestions:
Some suggestions:
1/Focus on quality. I do not know what you are invested in but if it's a RA make sure the underlying funds are managed by a quality asset manager. Know who the actual portfolio mgr is & investigate him/her. Be wary of 'boutique' managers with grandiose fund names.
2/Have a look at the underlying asset classes including your private funds. At this stage in markets the suggestion is cash (MMarket + Fixed Deposits) at around 40% to 50%. Over the next 12 to 18 months you can gradually move say 10% to 20% back into equities.
3/ Look at the underlying stocks in the portfolio(s). Make sure they are quality. Would be preferable if there is some exposure to gold.
4/ Maintain diversified Rand protection. This can be via the global allocation in your funds, global trackers purchased on the JSE, gold (eg: ETF GLD), mix of quality Rand hedge stocks, some exposure to large diversified miners and US$ cash (eg: ETF NEWUSD) if you wish.
5/ Maintain some exposure to SA. Many of our stocks are at modest valuations and the yield is good. Again, focus on quality (management, sustainable earnings and reasonable debt levels). Do not get sucked into the lesser quality 'cheap' stocks.
6/ Maintain some exposure to property - local & global. Despite rising interest rates and negative sentiment, property is an enduring asset class underpinned by physical assets. SA prop stocks are trading at yields well above the 10-year bond yield.
7/ Note all the above is just one person's view. Nothing more.
