KulaRaha wrote:Sufficiently Philanga....thropic wrote:Let the Perera $€£¥s come. Who doesnt want to see the NSE trade at PEs of 50 like was the case in 2006?
Centum will fly past 100,member will be at 200,simba at 250 while mpesa will flirt with the 30s
I say we need this Perera like yesterday!
Pray tell, how will all that happen by borrowing more?
Very simple Bw.Kularaha.This APB 1/2014/30Yr bond
at say 7.5%(Wow) will distort the yield curve thus pushing the yields down. When you have low interest rates,@Jerry can rush to the bank and take out a loan hence more liquidity in the market. Low interest rates ideally should lead to high Equity prices as Fixed income securities become unattractive as an investment.
This Perera bond would also in the short run lead to a strong KES which wouldnt be an incentive for MPC to alter the interest rate upwards.
Well the story might be very different in the long run if the money is not put to good use i.e development projects. If it goes to recurrent expenditure(highly likely from this clueless duo
we might be back to where we were in 2011,actually even worse! Inflation will be up there, and so will the interest rates. Pray the opposite happens.
But for now, lets receive the money with open arms. It will bea good time to sell your Equities and your tuplots at sky high prices and then wait for the.........then you move to Fixed Income!
@SufficientlyP