If you’ve been watching your investments in 2026, you’ve likely seen some worrying numbers. The JSE dropped sharply earlier this year, one of its worst months since the 2008 financial crisis. The urge to pull your money out and put it somewhere “safe” is completely natural. But acting on that urge is often the biggest financial mistake people make.
Markets go up and down, always have, always will. What separates people who build real wealth from those who don’t is usually not how much they earn, but how they behave when things feel uncertain.
Why do markets move around so much?
Think of the stock market like a busy taxi rank. Prices go up when demand is high and drop when supply outstrips demand. Markets react the same way: to news, global events, interest rate changes, and investor sentiment worldwide. South Africa feels this more than many countries because so much of our market is tied to commodities like gold and platinum. When global tensions rise or commodity prices swing, our market responds quickly. That’s not a sign that something is broken, it’s just how markets work.
The danger of making decisions out of fear
When markets fall, many people sell. It feels logical, cut your losses before things get worse. But the numbers tell a different story. Research into investor behaviour during the turbulent markets of 2025 found that even people with access to good financial advice made emotional decisions that hurt their returns. They sold when they should have stayed. They chased investments that had already peaked. They panicked when patience would have paid off. The consistent finding: people who stayed calm and stayed invested came out ahead.
What should you actually do?
You don’t need to be a financial expert to protect your investments. A few habits make a big difference.
- Diversify. Spread your money across shares, bonds, and cash. When one area takes a knock, others can cushion the blow.
- Build a cash cushion. Three to six months of living expenses in an accessible account means you won’t be forced to dip into investments when an unexpected bill arrives.
- Stop checking daily. The more often you look, the more likely you are to react to short-term movement that has no bearing on your long-term goals. A quarterly check-in is enough for most people.
Reason for cautious optimism
Despite the noise, the foundations are more solid than they’ve been in years. Load shedding has largely stabilised, South Africa was removed from an international financial watchlist, and our credit rating was upgraded. For South Africans saving for retirement, a home, or their children’s education, a more stable economy means your money has a better environment in which to grow.
Markets will always have good months and bad months. What you can control is how you respond. The investors who build lasting wealth aren’t the ones who saw the dip coming, they’re the ones who stayed in, stayed calm, and kept contributing even when the headlines were scary. Make a plan, trust it, and don’t let short-term noise pull you off course.