Real Estate Investor Magazine South Africa Real Estate Investor Magazine - September 2017 | Page 7

EDITORIAL VIEW Winning Back Personal Investor Confidence Nelson Mandela “ Do not judge me by my successes – judge me by how many times I fell down and got back up again. E conomists agree on one thing: the damage done by politi- cal instability, corruption and mismanagement of the economy has dented confidence of the investor com- munity and consumers in South Afri- ca. According to the latest RMB/BER Business Confidence Index for South Africa, business confidence slumped by 11 to 29 points in the second quarter of 2017. This is the lowest value since the last quarter of 2009, as confidence declined across all five of the sectors surveyed. It might signal that the current business cycle downswing is becoming even more pronounced and could get even worse. Most economists and the business community would agree that the main cause of the poor performing economy is centered on one person: President Jacob Zuma. Looking at the international land- scape, U.S President, Donald Trump (our front cover story) shares much of President Zuma’s style. In recent months, it’s become clear that his bil- lionaire investment tactics aren’t really serving American markets, economy, and people. Markets are reacting neg- atively to his bravado and political turbulence. Known for his aggressive tactics, he criticizes businesses, fires anyone who disagrees with him, and is losing face with the electorate, his colleagues, and the American public. On top of this, nearly entire team has changed, leading to market uncertainty. Local investors have already turned to safer havens and mainly offshore in- vestment to spread their risk of having put all their eggs in one investment basket, South Africa. Many investors have been applying this strategy for a number of years already. This has be- come more prominent today, while others have a wait-and-see approach. While it is easy to point fingers at governments and blame macro-issues, it is not wise to leave your destiny in the hands of politicians and out side influencers. Investors have to take re- sponsibility for their own decisions. The focus must be on micro-issues, which an investor can control and not-macro issues where there is no control. This calls for good financial education, being disciplined with your finances, and using street-wise investing methods that can withstand any market force or recession. Real estate investing is either an ac- tive or passive process, both with their respective pros and cons. Many inves- tors start their journey buying a house. The next step is normally buying a sec- ond property to rent out to a tenant. As Robert Kiyosaki says, you need to learn financial skills to survive any financial crash. In terms of dealing with adversity, here are principles in business and investing I learnt from Tony Rob- bins and how you can take control of the situation: Firstly, you must accept the hand that fate deals you, while try- ing to make the most of it to learn and take action on it. Problems are oppor- tunities in disguise and are just there to test your resolve. Focus on the solutions and not the problems, no matter how difficult it can become. Persevere, even when times are tough. Keep doing what you are doing in a focused manner. Enjoy the read and successful investing NEALE PETERSEN PUBLISHER SA Real Estate Investor Magazine SEPTEMBER 2017 5 “