Wazua
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Rank: New-farer Joined: 11/15/2010 Posts: 11 Location: kenya
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Hi there. Does anyone have any good ideas of stocks that one should buy in the US market?
I generally stay away from penny stocks and ETF stocks. They can burn if you are not careful. Currently I am looking for a breakthrough stock waiing to explode in the next 6 months.
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Rank: New-farer Joined: 9/3/2010 Posts: 26 Location: Nairobi
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think under tab offshore there is a nice thread abt overseas investing by one young yu may get one of two.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Try HB Life is short. Live passionately.
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Rank: User Joined: 5/9/2010 Posts: 1,418 Location: Nai
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This is a kenyan forum . so you'll get the worst drought of answers you have ever heard...... by the way there are so many opportunities on the N.S.E -Nairobi- y do u wanna go all the way to U.S ? Your future depends on your dreams so go to sleep !
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Rank: Member Joined: 11/14/2006 Posts: 64 Location: Far East
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swaweru wrote:Hi there. Does anyone have any good ideas of stocks that one should buy in the US market?
I generally stay away from penny stocks and ETF stocks. They can burn if you are not careful. Currently I am looking for a breakthrough stock waiing to explode in the next 6 months. I think all stocks be them penny or dollar need care otherwise kuchomwa utachomwa tu...why not spend ur penies in kenya u can buy more shares than in the US and spread ur wings like an Eagle thus getting more balance.
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Rank: New-farer Joined: 10/25/2010 Posts: 18
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America is crumbling slowly, so i dont understand why you would want to invest here especially in stocks. My advice to you is to invest in developing countries like Kenya, Rwanda, Sudan, etc where its much more favourable to you. America aint developing any more. If you are a big shot, try Singapore, China or New Zealand. Hope that analysis helps you man...
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Rank: Elder Joined: 9/23/2010 Posts: 2,220 Location: Sundowner,Amboseli
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If the point is making more money from your scarce resources, BTW, money is always a scarce resource, keep of the American market and put your hard earned money in emerging economies. Watch out for China. In the next few years, their economy is predicted to surpass that of the US! Here in Africa, my best 2 bets would be Uganda and Ghana. Na kama wewe ni mkenya, why dont u start with your motherland, thats if you havent yet taken the plunge! America might soon go the way of the Roman Empire, but not soo soon! @SufficientlyP
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Rank: New-farer Joined: 10/25/2010 Posts: 18
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@ Sufficiently Philanga....thropic Very true. Especially now that they are talking about quantitative easing and countries like China, Japan, etc saying that they gonna dump the dollar, one should look for alternative markets. My best best bet is Afica because thats where there is potential, untapped market, unused resources, etc. If you look at the Kenyan stock market of late, it has been or is being dominated by foreign investors especially from America as well as other African countries like Nigeria, Ghana, South Afica, etc.
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Rank: New-farer Joined: 9/11/2010 Posts: 36
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Racasem1... I don't know your level of knowledge but I am hoping you're joking, first, US stock market has been rallying for the past 14 months with Dow gaining close to 100% of its value within that range of time, so your careless comment of america crumbling is baseless.
Your next advice on investment is also rediculous by just throwing Sudan in the mix of the countries you would invest in that statement alone suggest that, you either don't know what you're talking about or your joking.
I also saw a technical term " quantitative easing" The last person I heard using that term was a form governer from Alaska and it doesn't mean anything, US economy is still the strongest and the most stable economy in the world, China economy need US economy more that the US need china economy, compared to US economy, chinease economy could indeed overtake US economy as early as 50 yrs from now but only in size but not the wealth, by the time 1.8billion chinease reach the level 350million Americans are in wealth, our great grand kids won't be alife.
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Rank: New-farer Joined: 9/11/2010 Posts: 36
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Rank: New-farer Joined: 10/25/2010 Posts: 18
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@ CapitalMarketsGeek. Am so serious for what I say is first hand account of what I see.As far as technology is concerned, I will give you a tick on that but on other sectors, its not working out at all. As for you hearing the governor of Alaska mentioning that term, I cant really do anything about that but all I can tell you is that quantitative easing is what the feds with Ben Barnanke are talking about so as to stimulate the economy because its not responding to the stimulus packages that Bush and Obama gave out. Am an accountant and not an economist and as far as my deduction goes about America, I stand firm by it because I see it happening everyday here, not in Kenya. As for Sudan, dont remember whether its south or north sudan. If you want more indepth analysis, thats fine with me, I will even break it down to you in finer terms.
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Rank: New-farer Joined: 9/11/2010 Posts: 36
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Racasem1.. I don't know what indicators would make you opt for investment in Sudan, but again, I don't know what kind of investment you're talking about, if its goats and cows maybe Sudan could offer a good deal, but if its financial securities then I really don't know where you got that.
Back to quantitative easing, Fed influence the quantity of money everyday, they do that by adjusting overnight borrowing/lending rates therefore influence the quantity of money, if you're into interest rate futures, then part of your job is to watch Ben's lips. So just to assure you, do not worry about US financial markets, Almost every player in US markets reported an impressive third quarter earnings. Lastly, when they talk about emerging markets, most major players, investment banks/ hegde funds, do not categories not even Kenya leave alone Sudan as an emerging market, sorry to hurt anyone feelings but, most african countries are categorized as too risk to invest. From what I see, you listen to too much politicians and economists who happen to be accademicians, the markets not listen to academicians coz they're so conservatives and uncreative, sorry professors and thank you for the good educations you gave all of us!
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Rank: New-farer Joined: 10/25/2010 Posts: 18
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@ CapitalMarketsGeek. As for Sudan, the only thing that is worrying investors right now is whether when the referendum is done, it will be peaceful as in the North will not cause chaos with the South (Or the other way round, cant remember properly) when it comes to oil production and profits hence the rest of the business, whatever you want to include in there.
Quantitative easing, hmmmmm. Let me put it to you in laymans language, it means printing money that the fed doesnt have, short and simple which leads to inflation. Why you think China is disagreeing with this kind of policy while you are here saying that America is still vibrant. Ask China how much debt America owes them and whether they think that the Americans will pay it. When Obama came to power, he had this notion of redistribution of wealth and guess whats happening to Americans right now, they are jobless and broke while asking for unemployment benefits, unemployment from every corner of each state continues to skyrocket.
And have no worries, you didnt hurt my feelings.
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Rank: New-farer Joined: 9/11/2010 Posts: 36
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@Racasem1. Thank you for trying to explain quantitative easing in layman's language, However, your explanation fit the layman way of understanding, first, US federal reserve system have so many ways to increase the quantity of money without printing currencies, so you're assumption that US is printing dollars is just not supported by any fact. Secondly, increasing the quantity of money is a short term economic stimulant that has been utilized by the Fed over and over again and it doesn't mean every time you increase the quantity, you automatically get inflation, there is a point beyond which, inflation become a threat and I promise you that FED has some damn smart people, every one is watching that point. And to set the record straight China is not and will not call america shots now or anytime soon, the fact that China hold US debt do not mean that US goes to China to ask for money, I don't know how layman I can explain how international debt markets work for you to understand. US is still the single highest credit rated government in the world, the size of US economy is still apprx 3 times the size of the second largest economy, China or Japan depending on some variables, so every time there is US debt on sale, its the most attractive debt in the market international debt market and thats how China end up buying alot of debts. The last time I check the international debt market, anyone could buy or sell a debt security so the China you ask probably didn't know what he was talking about, if china thought US debt securities wouldn't be honored the would have dumb the debt a while ago coz its a free market. Does it make sense? Talking about unemployment in US, US unmeployement is 9.5%, China is 4.3%, UK is 7.7%, France is 9.2%, Germany is 7.5% Japan is 5.1%, Kenya is apprx 40% and Sudan is 18.5%, looking at those numbers and comparing it with the size of the economies and the population, what come into your mind? Lastly, I understand why you think the way you do, after all I don't expect my accountant to really get this stuff, it like me trying to explain how bad microsoft processor is, I will probably do the worst explaining, that doesn't mean I am dumb, it just mean thats where I didn't spend my time in!
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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@Capitalmarketsgeek,1st can't argue the importance of an accountant as they collect, classify, prioritize & present the financial data that you analyze & make decisions on. Secondly, govts and firms borrow from the debt mkt through bonds and bills and are mostly expected to invest in projects that will generate revenues (HF-real estate, Safaricom-Upgrading network, emerging mkts-Infrastructure) while the US borrowed alot to bail out companies and spend on their citizens. Look at their debt against the GDP 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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You can never solve a debt crisis by increasing your budgetary deficit and taking in more debt, its like giving an alcoholic more alcohol. The US economy is truly in problems, true wallstreet is doing well but the main driver of any economy the consumer or normal taxpayer 'Main street' thinks otherwise. 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: New-farer Joined: 9/11/2010 Posts: 36
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@ Erifloss... I have love for accountants, no disrespect here. I like when you throw in GDP to Debt ratios, but you have to also know that, US did not borrow money to bail out companies, please if you make a statament ensure that its right, apprx $750billions were used to bail out companies with a 5% prefered dividend annually for 10 yrs, more that half of the money has been refunded with Goldman Sach and JP alone returning with a profit of $2.7billion combined. US gov do not need to borrow $750billion. What you're lookin at is generational debt owe to social security and medicare that has been accummulated over half a century. When I want to execute a trade, I don't look at the how much debt the US has, thats BS, I leave that to stupid politicians and academicians, I look at opportunity, and there is alot of opportunities in US markets if you're smart, so of the other international markets are pocket change money makings. American economy is tightly cushioned by the mighity of American corporations.
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Rank: New-farer Joined: 10/25/2010 Posts: 18
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@ CapitalMarketsGeek.
Yes, the feds have many ways of increasing the quantity of money and everything in their dirty bag of tricks and quantitative easing is the last resort for America of which if they say yes, it will be the second time. Now, am a pretty realistic dude and by this I mean that I know that 1+1=2, not 1+1=4 but the latter one seems to be what the feds know. Japan tried that stunt back in the 90's and it didnt work, so what makes you think that America, doing this for the second time will work??
And no, I did not say that China will start calling shots on America, all I said is that America owes China 500 billion $ and may be higher as I type this arguement. And trust me when I say that I get your arguement but the point is that for instance, when they decide to do the quantitative easing for the second time, China will definately complain because the value of what they have invested in the u.s govt treasuries will be devalued greatly. And yes, we will see whether Chinese debt will be honoured which I highly doubt.
You see how Afica is known as a third world country, in real sense Africa is a first world country because it got there first and American will surely get there.
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Rank: New-farer Joined: 11/15/2010 Posts: 11 Location: kenya
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@CAPITALMARKETSGEEK...the link you provided was awesome. The US still has some companies with great returns. I have been hanging on to shares of AAPL I bought@80 at the height of the financial woes..the best decision I ever took. I love that market for its volatility and naturally the heartburns that come with it! @qw25041985 --I do have investments in the NSE lakini the profit margins are so minimal. This forces me to day trade in the DOW JONES. A stock like BAC (bank of america) and Citi (C)has tengenezad mzuri chums in the last 2 years. The only thing I don't like about them is their fundamentals. Debts they have in their coffers are not healthy.
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Rank: Member Joined: 3/6/2008 Posts: 632
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@swaweru true Bank of America (Merly lynch) has made me serious cash as well and Barclays esp after the recession. Lets not be too harsh on the Kenyan market, i think it's still yet to develop fully like you i invest in Kenya however am a long-term investor half of the time i never know whats cutting and still don't understand how guys say some-one can depress a share price, it's a wide known fact price is largely determined by supply and demand (as was recently demonstrated by the growth of wheat prices after Putins announcement) @Capitalmarkets, you trade commodities?? and true bout your statement wonder why people say/believe Kenya is an emerging market, but guess it's largely determined by ones world view... The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.
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