erifloss wrote:Nabwire wrote:[quote=erifloss]Everything held constant for the year at the current rate of 20.696%, if one rolls over their investment the effective rate will be around 22.35% now where else can one get a safe return like this.
20% is roughly 5% every 3 months, even if we get generous and stretch it to 9% every 3 months, thats only 3% per month!! Nimekataa, there are stocks that rally 10% in a couple of days, I just dont get it. But then again, Im not loking for a safe return.
I think you should check the average loss for the last 6 months alone at the NSE and also remember this is an elections year. To be true to ourselves foreigners are the ones who initiate most of the rallies and this year i don't see them coming in but getting out in droves.
The economic environment is not also that promising. I'm totally happy with a 20% return.[/quote
And here is where the true investors are separated from the wannabes. If you look at the market as being down and that foreigners are fleeing, you miss the half full analogy of this being a great buying opportunity. We all know markets are cyclical, so even if they are fleeing, they will be back
There is money to be made. I see alot of herd mentality here, Tbills are safe, they are not great. It takes great risk to make great money, why would one want to preserve their capital when they could grow it? (Granted there is a chance of "losing" the capital) A good example, EK has more than doubled in less than a week
Granted it is a huge risk coz the comapny may be going to bankruptcy, but no pain no gain. Why in hell would I tie up my money in Tbills for a paltry 3% per month???!!!
http://finance.yahoo.com/q?s=EK&ql=1