Understanding Investment Risk in South Africa
Every investment carries some level of risk. In South Africa, local factors such as currency fluctuations, political developments, and commodity price cycles can influence returns just as much as global events. Knowing these risks helps investors make more informed decisions.
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New articles on South African markets, behavioural finance, and long-term investing principles are published regularly. Subscribe to RationalInvestor Notes if you’d like them delivered to your inbox.
Why Rational Investing Matters in South Africa
South African investors face a unique mix of opportunities and challenges: a volatile rand, high equity-market concentration in a few large companies, and periods of strong commodity performance followed by sharp reversals.
A rational, evidence-based approach helps cut through short-term noise and focuses on what academic research has shown to work over decades: diversification, low costs, and staying invested through market cycles.
This site shares insights drawn from decades of global and local research—no hype, no promises of quick riches, just clear explanations of how investment markets actually behave.
Market History Lessons
How the JSE has performed over different decades and what long-term data from South Africa and abroad actually tells us.
Currency & Offshore Exposure
Why the rand matters, how offshore investments fit into a South African portfolio, and what history shows about timing currency moves.
Diversification Explained
Simple breakdowns of asset allocation, the role of bonds, property, and global equities in reducing risk over time.
Behavioural Finance
Common psychological traps South African investors fall into and practical ways to avoid emotional decisions.
Risk & Volatility
The difference between permanent loss of capital and short-term price swings—and why understanding this changes everything.
Academic Research Summaries
Plain-English digests of important studies relevant to South African investors, from Fama-French factors to local market anomalies.
Key Topics
Evidence-based ideas that have stood the test of time
Evidence Over Emotion
Academic research from South Africa and around the world consistently shows that disciplined, patient investors who stick to a simple plan tend to achieve better long-term results than those chasing the latest hot tip.
RationalInvestor Notes exists to share those findings in clear, jargon-free language—especially for South African readers who face unique currency, tax, and market-structure considerations.
No Crystal Balls Required
Successful long-term investing doesn’t require predicting interest rates, elections, or commodity prices. It rests on understanding risk, keeping costs low, and giving well-diversified investments time to grow.
These principles have held true through every major South African market event of the past century—from the 1970s gold boom to the 2008 financial crisis and beyond.
Contact
Questions, suggestions, or ideas for future articles? We’d love to hear from readers across South Africa.
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89 Helen Joseph Road Bulwer, Berea Durban 4083 South Africa
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