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Comments on Current Affairs

26
Jun
2015
0

Rollercoaster Ride on the JSE

It has been another roller-coaster ride on the JSE, as the graph below shows.  The sometimes steep ups and downs of the exchange illustrate why long-term investors should not be alarmed by short-term market movements.  From a drop at the beginning of the year, the All Share Index went up steeply, albeit not in a straight line, until mid-March, when it took a breather, before soaring to a record high at the end of April.  But May and June saw it drop – external influences such as fears of a Greek default, or worries about when US rates would be hiked – have been cited as amongst the factors influencing that drop.  But come June the index went jogging upwards again.  So it has been said before but it is worth repeating here – investors should not lose sleep over short-term volatility.

JSE - JAN - JUN 2015.(3)