Congrats to all equity investors!

This will not take a lot of time. I want to take you back to my blog posted on 28/4/2009. Just a short re-con:

Cash then at prime interest rates, 13%, cash now 9.5%, that is a 27% drop!

Shares then 20 000 points on JSE, now 30 500, that is a 53% climb!

The combined difference of investing in shares rather than cash over the last 17 months was 80%!!

For those of you who used the opportunity to invest in shares, well done! This will not happen again soon.

The strategy going forward should be:

• Don't panic when the shares drop back a bit, it has to happen!
• Continue investing on a monthly basis rather than big lump sums if you can.
• The next few years should see the Rand weaken and inflation picking up, investing in international shares now should benefit from the weaker Rand.
• SA Bullion sells Kruger Rands at round 5.5% cost. Gold will do well when Rand weakens against the $ and if the Gold price remains high. I am not a keen buyer of Gold but if you are then you might get something back in a few years from now.

It is almost end of the year. We will reflect on the past 12 months and look at 2011 in a month or two.