What a week. From an investment viewpoint, we must focus. I want to share a blog post (here) recently on exactly that. It probably says it better than I can…
The reason I get to largely ignore the exchange rate is because I keep as little money as possible in cash, and as much as possible in productive assets. Things that are actually doing something valuable. The waves still impact me, but it becomes about shifting my stuff up the beach to stop it getting wet, rather than being tossed around in the storm.
There is a bucket load of noise out there. What we can, and should, focus on is the things that actually get done.
What am I highlighting this? Whenever a crisis hits South Africa, I hear calls of “go offshore now”. It was at its loudest last time the pound was when the Rand was R24 to the GBP. Stop trying to play this local vs offshore game. Invest in productive assets. As the Swart Donkey says, these are “things that are actually doing something valuable”. It doesn’t matter where in the world you are – you need local productive assets to replace local income and global productive assets to fight Deep Risk.
What I have been reading