Where are the big fund managers putting their money?it's not like the bond market is also vibrant....esp after this months issue fellows are so confused.

NSE20 breaks below 3500 handle and closes at 3494 on a day when mpesa banks had bids smashing the sellers on special dividend on top of the earlier declared dividend. Indeed mpesa bank vs the bear market!!! I keep wondering how the index would have been hammered by the bear if mpesa bank price was around 10 - 12 range

Three more trading days left in July before we head into August where global markets start preparing for heavy action towards September and October as funds book square for year end. If Q4 becomes a sellside for global stocks, what will happen to NSE20 which simple can't find a floor since 2015 as the bear continues to bite harder?

The finance and economic realm of the planet is interconnected. More so in the aftermath of the global financial crisis ( which was also economic in nature but the economic bit was under-reported to fit the script). The causes of that crisis were masked and continue to be masked through debt. In short, the lessons were never learnt and the problems were never fixed instead more of the same excesses have been perpetuated ever since.

Every single economic unit is upto its neck in debt from sovereigns, corporates, households, individuals heck even CB's are in on the action. What we might be looking at in its early stages is a deleveraging cycle. All manner of unsustanaible businesses have sprung up fueled by the loose monetary policies globally. That is exemplified by the fact that we have over $13 trillion (about a third) of the sovereign bond yields in negative territory including some whack jobs such as Portugal. Mr market has to unwind the cheap credit so as to sort out the wheat from the chaff as it were.

The dangerous thing about this bear both locally and globally is that there are so many asset classes in bubble territory it is hard to keep up. In terms of severity(both financially and economically) of their downturns this is how the various asset classes rank(from most severe to least severe);
1. Bond market (goes hand in hand with a currency crisis).
2. Real estate market.
3. Commodities market.
3. Stock market.
Leaving the commodities aside - some of which are yet to complete their tanking eg oil - the rest of markets are yet to boil over but at varying levels. The order in which they will be reset is anyone's guess but reset they must. Most of the real estate and bonds are at record all time highs...we all know how this ends. As for KE, since the onset of the GFC, these cheap inflows have mostly shown up in real estate.

Undertaking any form of analysis of KE in isolation is not prudent. It's good to have a global perspective and our euro bond monies amongst other factors have made sure we are tied at the hip with the international happenings. So, other than the tumbling KE economy a lot else is happening.

Safcom vs the NSE bear, I side with the bear every single time though I must admit Safcom has put up one hell of a fight. Any ammo left to keep swimming against the current? Local demand just like the econ has flat lined hence most of the bids have been foreign, which leads to the simple question ...what happens when the plug is pulled from their end?
PS: I don't mean to scare anyone. Just offering some perspective.

Safaricom vs Bear is the battle that we are watching. The special dividend will help safcom but for how long can safcom hold out. Is it not inevitable that the bear may lose the short term battle but win the war?

Thankyou.An interesting perspective to the current happenings.Always look forward to reading your posts.Keep them coming