wukan wrote:Ericsson wrote:Oil prices are rising;now at close to $70 a barrel.interest rates globally are going up.
Next year may not be a good year for stocks.
Contrarian thinking
If oil price rise then that makes turkana oil more viable so more dollars into KE for oil infrastructure more expatriate spending. Rising oil price also means weaker dollar(inverse relation) so its 'risk on' for frontier markets so more foreign investors into KE stocks. Interest rates won't go up so much coz Trump wants a weaker dollar to MAGA. The mid-term elections past Nov is what changes the scenario.
The key risk for KE stocks is another drought which is more likely as 2nd La nina is brewing. Weaker consumer purchasing power means soft company earnings, profit warnings, weak credit demand which means the calf won't mature into a bull.
2018 preserve cash and buy the dips. Best stocks to own KCB, Total, Jubilee. Speculating on cryptos is much more rewarding
The key risk for 2018 did not materialize instead too much rain.
My stock picks for 2018 KCB, Total and Jubilee have been resilient. Total has reached maturity in price with oil prices going higher the margins are thinning out. Exchange Total for Stanlib Fahari I-reit.
Next risk to watch out for is US mid-term elections