Good afternoon,
Markets have had quite a tough time in August, and as always trying to forecast how they will act and which direction they will take is difficult. One thing we do know is that financial markets are volatile which is often brought on by irrational behaviour.
Market efficiency tends to get thrown aside as irrational investor behaviour usually overwhelms rational market behaviour.
The recent sell-off we believe is just that. The markets correcting due to a period of strong growth. It was expected. What followed was the irrational behaviour of investors that began to indiscriminately sell as a result.
We all need to take a deep breath and realise that short-term market noise is not a reason to panic. Volatility is expected and should not be the cause of mass selling or hasty decisions.
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Kind regards
Fundzcorp Team
