Alexander Forbes’s Janina Slawski on lessons from past market plunges

The global financial markets have been experiencing unprecedented levels of volatility due to the ongoing health crisis caused by the COVID-19 pandemic. Many investors are feeling anxious and uncertain about the future of their investments. However, history has shown that markets have navigated through crashes and eventually recovered. In a recent interview with CNBC Africa, Janina Slawski, Head of Investment Consulting at Alexander Forbes, shared valuable insights on the lessons learned from past market plunges and strategies for the future. Slawski emphasized the importance of maintaining a long-term investment strategy and remaining resilient during turbulent times. She highlighted the resilience of the markets post-crashes such as the global financial crisis in 2008 and previous health crises like SARS. Despite the current uncertainties surrounding the timeline for a vaccine and the potential long-term impacts on the global economy, Slawski remains optimistic about the market's ability to recover. She discussed various recovery scenarios, including a V-shaped, U-shaped, or L-shaped recovery, with the hope of a swift rebound. However, she cautioned that a prolonged recovery could occur if fundamental issues such as a breakdown in global trade are not addressed. Slawski advised clients to focus on their long-term investment goals and avoid reacting impulsively to short-term market fluctuations. She stressed the importance of staying committed to their investment strategies and avoiding the temptation to cash out or make hasty decisions based on daily market movements. Despite the recent uptick in market activity and positive signs, Slawski warned of potential volatility, particularly in the South African market, which faces the risk of a credit rating downgrade. As investors continue to monitor market developments closely, Slawski's key message is to remain resilient, stay focused on long-term investment goals, and weather the storm with confidence in the market's ability to eventually recover.