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Traditional global diversification has served investors well by spreading exposure across different economies and financial markets. However, its effectiveness depends partly on the continued functioning of an interconnected international financial system. A major conflict involving the world's principal economic powers could fundamentally undermine that system.
Southern Africa would not escape the economic consequences, but its natural resources, productive capacity and relative distance from the principal theatres of war could provide important advantages. For Namibian investors, the challenge is therefore not simply to choose between local and offshore investments. It is to identify investments that can preserve value and remain useful under fundamentally different geopolitical outcomes. For pensioners and those approaching retirement, accessibility of capital and dependable income are paramount. For younger investors, long-term growth remains important, but permanent capital destruction deserves greater consideration than conventional diversification models generally allow. Ultimately, the safest portfolio may not be the one with the widest geographical spread, but the one best positioned to preserve the investor's financial security in an increasingly uncertain world. Read paragraph 6 of the Monthly Review of Portfolio Performance to 30 September 2026 for our views on investment markets and global political developments. It also reviews portfolio performance and provides insightful analyses. Download it here. |
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