The above Thomas Fuller quote has particular resonance now, as we find ourselves in extraordinary and uncertain circumstances. After a difficult 2020, now in 2021 we are still seeing the impact of COVID-19 in South Africa and the world. Luckily with vaccines now being rolled out, things are looking more positive.

It is important during these disconcerting times to remember that our species is resilient and adaptive. Over the course of history, the creativity, ingenuity and innovativeness of humanity have always prevailed, bringing us through many dire circumstances and enormous changes. There is no reason to believe that this difficult chapter we are currently living through will be any different.

Following the COVID-19 pandemic-led market crash in March 2020, investment markets quickly recovered when global monetary authorities provided support to the financial markets.

This aided confidence in the financial system and created the expectation that economies and investment values would ultimately recover – despite the challenges.

Also, in response to news that coronavirus vaccines were proving effective in scientific trials, investment markets increased further. Even though the vaccine roll-out had not yet actually begun, it signified a light at the end of the proverbial tunnel. The first flicker of dawn.

Although investment markets were up for the full 2020 year, with positive returns for the 12-month period, there was unprecedented volatility during the year. The high levels of volatility are not surprising, given the high degree of uncertainty experienced during 2020, and the significant knock-on effect it has on the economy.

But remember, be disciplined and patient, and understand that, while markets experience short-term swings during uncertain times, in the long term they will reward you.

The chart above shows the performance of the Fund’s main portfolio, net of investment fees, compared to inflation.

There was a significant crash in investment markets in March 2020, with market values falling by almost a third in a short period of time. The fact that the Fund’s investment performance for the full year is positive (and a healthy 3.4% above inflation) is an excellent outcome after a challenging year.

Notwithstanding this good outcome, we are still in the middle of a tough chapter. Each one of us is experiencing the consequences, and the economic impact continues to be significant. But, as challenging as things are right now, the dawn is coming.

Until the dawn does arrive, the wise approach is to do our best with the things that we can control. Avoid worrying about the things that you cannot control.