When I got the royal hoof from my employer at the end of 2014, they had the grace to give me a year’s worth of salary. Since I had not withdrawn my allowed tax-free lump sum from my pension -- instead simply transferring the whole amount to a PSG Konsult living annuity -- I received a nice, untaxed, wad of investable cash.To play it safe with my cashflow, I immediately transferred a sum equal to 12 months of mortgage repayments into my bond. What I had left, I invested with the Purple Group.
The market is a strange and wonderful creature and it tempts many investors to second-guess what they think are hot trends. The point is that January’s performance, especially that of the standout super-performers -- JSE heavyweights Richemont, BHP Billiton, Anglo American and Naspers -- should never be assumed to be a done deal. Neither should the rather nice run-up in gold and platinum stocks be assumed to continue. As it turned out, a dose of caution was called for in those cases.