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Investment in shares in a politically charged Country is for steel hearted
the deal
#21 Posted : Wednesday, February 24, 2010 11:14:26 AM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
One can bail out now n come back lets say 3 month from now the nse will still be the same...i expect politics to intesify in the coming months as a result most foreigners will watch from the sidelines with lack of foreign participation the nse will suffer...or the kenyan shilling will head south as a result foreigners like me will have more cash i n our pockets to invest so that will trigger our return to the nse...
VituVingiSana
#22 Posted : Wednesday, February 24, 2010 11:39:47 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,136
Location: Nairobi
the deal wrote:
One can bail out now n come back lets say 3 month from now the nse will still be the same...i expect politics to intesify in the coming months as a result most foreigners will watch from the sidelines with lack of foreign participation the nse will suffer...or the kenyan shilling will head south as a result foreigners like me will have more cash i n our pockets to invest so that will trigger our return to the nse...

You are an exception to the rule... coz u r a local foreigner...

Local foreigners are in tune with what happens on the ground... not those who do not live there...

I invested in Zimbabwe... then mugabe decides 51% for locals... I decided to bail (with losses)... why? Coz I wud rather deal with Kenya where I (think) know the lay of the land... plus being a local local...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
smano
#23 Posted : Wednesday, February 24, 2010 12:21:54 PM
Rank: Elder


Joined: 12/13/2006
Posts: 2,589
@Fundaah, your post reeks of speculation! Surely there are extended periods where you have seen gains regardless of the political bickering. Sometimes it's better to switch to defensive stocks during volatile periods if you can't stand the heat, stocks which have good dividend history and are less cyclical in nature - BAT,EABL and SCB come into mind.

Anyone who bought last year averaged down pretty well or is still laughing to the bank. You know better than to exit at loss territory. So what will you invest in, land?
BEER IS LIVING PROOF THAT GOD LOVES US AND WANTS US TO BE HAPPY!
VituVingiSana
#24 Posted : Wednesday, February 24, 2010 12:32:32 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,136
Location: Nairobi
@smano - easy to say about averaging down... I went all in in early 2008 (thinking that calm will prevail... then came serious PEV)...

I cud not exit except at loss... then when prices fell further... I had no cash to buy more!!!

If the PEV had not happened, Kenyans would have managed through the Global Financial Crisis + Drought much better...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mkonomtupu
#25 Posted : Wednesday, February 24, 2010 12:57:26 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,001
Location: River Road
Average down looks good in hindsight. But when the market is going down you swear to stay off shares. Fear is twice as powerful as greed.

the deal
#26 Posted : Wednesday, February 24, 2010 3:04:59 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
@vvs hehehe i kinda benefit since i keep most of my money in my standard bank nam account believe me my savings account does much better than most stocks @ the nse during political turmoil i.e pev 2007 the ksh vs rand was 15 bob so my money also rose accordingly while stocks @ the nse fell.
the deal
#27 Posted : Wednesday, February 24, 2010 3:05:19 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
@vvs hehehe i kinda benefit since i keep most of my money in my standard bank nam account believe me my savings account does much better than most stocks @ the nse during political turmoil i.e pev 2007 the ksh vs rand was 15 bob so my money also rose accordingly while stocks @ the nse fell.
wasee
#28 Posted : Thursday, February 25, 2010 5:05:28 AM
Rank: Member


Joined: 2/5/2010
Posts: 273
Location: NBI
I seem to agree with fundaah. its for the steel hearted, also people with connections hence can make quick buy and exit decision based on insider info they get and also luck.
Brewer
#29 Posted : Thursday, February 25, 2010 1:00:19 PM
Rank: Member


Joined: 6/24/2008
Posts: 238
Is it just me or does everyone not remember stocks plummeting because of PEV in early 2008, because the fall around that time was insignificant compared to the fall starting the 3rd quarter of 2008 because of global financial crisis. Moral of the story, watch the Dow Jones very carefully.
guru267
#30 Posted : Thursday, February 25, 2010 1:19:37 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Brewer wrote:
Is it just me or does everyone not remember stocks plummeting because of PEV in early 2008, because the fall around that time was insignificant compared to the fall starting the 3rd quarter of 2008 because of global financial crisis. Moral of the story, watch the Dow Jones very carefully.


@Brewer the current correlation with the dow jones is only justified because foreigners are controlling most of the days trade...

i dont see this correlation applying if locals take back control of the market...
Mark 12:29
Deuteronomy 4:16
mkonomtupu
#31 Posted : Thursday, February 25, 2010 1:31:30 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,001
Location: River Road
Yes and the NSE suspended trading for some hours to stop a free-fall. The fall of PEV was more significant only that the foreigners investors held ground(safcom IPO) before the global financial crisis forced them to avoid any risky markets. It's unlikely the US will recover soon and if it does it has to inflate itself out of debt, the PIGS will continue having problems balancing the budgets so movement of capital towards higher returns in emerging and frontier markets. Moral of the story watch China very carefully.
VituVingiSana
#32 Posted : Thursday, February 25, 2010 1:42:07 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,136
Location: Nairobi
The PEV was a harbringer... Kenya markets lag... so folks sold shares 3-6 months after PEV to pay expenses...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mkonomtupu
#33 Posted : Thursday, February 25, 2010 1:44:39 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,001
Location: River Road
guru267 wrote:
[quote=Brewer]
i dont see this correlation applying if locals take back control of the market...

Guru, I don't see that happening soon. January foreign investors took 72% of the trading volume. NSSF now has to invest 100% of new contributions into government securities due to changes introduced in last year budget. The institutional investors will follow the foreign investors as most are now headed by "expats"
VituVingiSana
#34 Posted : Thursday, February 25, 2010 5:37:40 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,136
Location: Nairobi
GoK is shortchanging NSSF.

Investing in government paper is OK but with yields dropping on Tresuries & the potential for better returns on equities means NSSF will continue falling backwards.

NSSF should be allowed to invest a ___% (max) in equities using strict guidelines as well as a ___% (min) in GoK paper. I would ban NSSF investing in real estate since there is too much leeway for fraud...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
qw25041985
#35 Posted : Saturday, August 14, 2010 1:35:18 AM
Rank: User


Joined: 5/9/2010
Posts: 1,418
Location: Nai
The referendum was peaceful .
Your future depends on your dreams so go to sleep !
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