In a bull market like last year and Jan/Feb this year, there was a full house, but when unpredictable bear set in recently , not much is heard from the crop of intelligent analyst we have here Most of us (including myself) did not forsee this.

The reason being that in stocks some events beyond our control can make the bear to rear its ugly head. Companies are returning salutory results with sound fundamentals but most of them are dropping beyond their fair value, others are just stabilizing below par.

However you look at it stock prices are cyclical, there is always the party time and the dull moment. I learnt this hard fact in 2008 when I was putting all in my investment in one basket stocks.

I have since adopted a balanced strategy in investing in different asset classes :-
- Stocks, Real Estate, Fixed Income, Savings in foreign currency. This reduces my exposure to market turbulence.

This reminds me of a friend who converted KSH 77 per 1 USD six months ago as a leverage, he decided to change from USD to Ksh at the current rate of 82+ and used that to buy some KPLC and KCB at the current discounted rate , he did not forsee that but when this opportunity becons, he took advantage.

On the whole when the bulls return, the blue chips or I would I call foreigners or fund managers stocks are the ones to recover faster, and they still return salutory dividends.

But be aware that the best time to invest is at times like this when most of us have pessimistic view of the market. But for your own interest let it be blue chips. You know them so I may not name all of them:- EABL,KCB,KPLC, ARM etc.

Just like the herding into some real estate. Paying 16M+ for a house in the sky?!?

The prices for most stocks are still looking cheap. What is not so clear is if inflation will persist. The response of foreign investors to the market will be key in determing how stocks will behave. Like Young said, one would go for blue chips.I will look at KCB, KPLC, EABL,COOP,MSC, ARM and CIC (over the counter).I will consider MSC due to current cheap price and their expansion programs.

Co-op bank is not a blue chip!

Its a green chip! LOL!!

KABISA APO. but first lets soak up these stocks. by the time kina wanjiku realize whats up the portfolio should be looking quite hundsome.

What to buy, when. That is the question. But as the index falls, if it will. It wont happen all at one. We may see some relief rallies like we've just experienced. I hope to take advantage of these, but only with speculative part of my portfolio. Is being all liquid, like gordon gekko proposed a good idea? Kinda risky if the index doesn't fall by much....

The Kenya Budget is almost 1 Trillion, 60% of that monies is local revenues...At 5000 NSE Index (listed companies are worth more than 1 Trillion)..

For NSE to have another bull rally...more than 300 billions fresh monies is needed..

Your guess is as good as mine...Foreign investors.have almost 65% control of market direction.
:) :)

This is a buyers market.