Tell me Wazuans, I can see the NSE has bottomed out and from now, the only way things can go is up....unless some of the super-low counters really go bankrupt and that is a risk am willing to take.
Now problem is; i don't have cash right now to invest and am afraid I will lose the opportunity. Can I take a loan to invest? Common sense says no..because if the companies goes bankrupt then am stuck with a loan to pay out of my future earnings...But if I sit here like a dummy I may never get a chance to invest at the right time....
If I get a loan well, (at less than 10% interest) can I take it and invest?

@ xxxxx... Yes I can service the loan...

^ this is good advise but incase you are young and have chosen a counter that can outperform the interst on your loan, then go ahead and take the loan! however, its not easy to make a decent profit from this move since u will be aimin to simply break even from the loan before obtainin real profit from the share which means the chosen share will have to rise about 20% to be considered worthwhile..

I would highly recommend no, but since you have the idea in your head, you may feel uncomfortable listening to someone who says differently to what you have in mind.

Point 1:
At most, the Nairobi Stock market will increase by an additional 50% in a year (its highly unlikely to see a market increase 50% in two consecutive years unless of hyper inflation).

On average, the stock market should rise in line with the GDP rate (because over the long term, it is highly unlikely a company will consistently grow faster than an economy).

So to highlight this point, Kenya's GDP according to Google in 2011 was US$33B (in KSH 2.93T). Safaricom's market cap recently was KSH 320B.

If the Kenyan economy were to grow at 5% for the next 30 years (so till say 2040) and you expect Safaricom to grow at 15% for the next 30 years, Safaricom's market cap in 2040 will be higher than Kenya's GDP. If you want the excel file let me know.

The same is true of East African Breweries, KCB will be close to the size of Kenya's GDP. Basically, you realise quickly that no stock will over the long run beat GDP...on average.

Point 2:
The Nairobi Stock Exchange market cap at present is KSH 1.8T (https://www.nse.co.ke/ - bottom right). If Kenya's GDP is roughly KSH 3T, the NSE is actually very expensive in relation to GDP than most stock exchanges in the World (look for World Bank market cap-to-GDP statistics). It is also unlikely that the NSE can become much larger than our GDP simply by compounding faster.

So, actually, your mind is telling you there is no way the stock market will go down, but in all probability, it is actually more likely to go down now simply because it is so expensive.

Point 3:
If you are smart you won't need debt - you'll just need time and if you are dumb, you got no business to be in debt.

Patience is key.


And last, of all, write down your last five years of investments. What rate did you compound your money. The key word here is 'write'. Don't just have a general idea, know the rate at which you compounded your money. If you are not sure of this, you should not be going into debt.


People always will feel they will miss the boat. That's the downfall of most people.

If i were you i would pinch myself very hard so that i can never think of doing that,its not guaranteed the market will grow as you think.just take your loan and service it your own way,then play the casino.