Irrational decisions during downgrade can trip up investments

Cape Town - The impact of S&P’s long-term foreign currency rating to sub-investment "junk status" will be felt gradually and South African retirement fund investors are urged to remain calm and avoid making irrational investment decisions during the "time of turbulence".

This is the message from Steven Nathan, CEO of 10X Investments, who added that the downgrade will likely result in higher inflation, higher interest rates and ultimately lower economic growth,  

He said the downgrade has compounded uncertainty in the local market and resulted in the continued weakening of the rand.
 
"It is important that retirement investors follow an appropriate long-term investment strategy that has a high probability of weathering all expected conditions to achieve the ultimate savings goal," said Nathan.