The first three months of the year have seen equity markets experience their worst start to a year on record. This was “fuelled” by the ever-dwindling oil price, while concerns over economic growth in China did the markets no favours either. Investors found their only hiding place in developed market government bonds, which coincidentally offered the worst risk/reward profile. And yet, despite the blood on the floor, there is still money to be made and reason for optimism.
The recent volatility of the rand, with experts predicting further weakness, as well as extended low growth in local markets, has led many investors to cast their eyes offshore. No investment should be made on sentiment or emotion alone, so what exactly constitutes a considered approach to offshore investing?