• About Us
  • Archives
  • SWG Registration
Samrack Media
Mahiga Homes
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
Samrack Media
No Result
View All Result

Investing Through Nairobi Stocks Exchange (NS) Bear Runs

samrack by samrack
March 13, 2017
in Kenya, Kenya Diaspora News, News, Securities, U.S Diaspora
A A
0
Investing Through Nairobi Stocks Exchange (NS) Bear Runs
Share this
FacebookTwitterPinterestEmailWhatsAppLinkedIn

Investing Through Nairobi Stocks Exchange (NS) Bear Runs

If you’re an NSE  investor who went heavy into the stock market at the height of the last bullish run (most notably from late 2013 till early 2015), you have no doubt had a fair share of sleepless nights wondering what went wrong yet the stock market was doing well when you got in. To understand this better, we need to look at the stock market cycles; the bull and bear runs. In between the winners of both cycles there are those investors who pour their hearts and souls into the market driven by a herd mentality that hypes up performance. These are termed the “Pigs” as they are clueless as far as market cycles are concerned and they always lose out hence the industry saying that “Bulls make money, bears make money and pigs get slaughtered.” Pigs form an interesting section of the market; they are always there to buy when the bulls are exiting the market.

The NSE has not seen anything out of the ordinary in spite of the obvious restlessness of investors as the bear run continues unabated. Bear and bull runs happen all the time, what an investor needs to know is which cycle is prevailing and consequently adjust their portfolios accordingly. Most fund managers will always offload or lighten their exposure in the NSE once the index breaks the psychological 4800 points mark, and instead opt for fixed income securities as a hedge against the inevitably imminent downward market spiral. Individual investors will often do the same to avoid value erosion on their equities investments.

Options during bear runs are varied in Kenya, with most people preferring real estate as security against volatility, Unit Trusts (money markets) due to their cheap entry and easy exit requirements and also the Treasury Bills and Treasury Bonds. For investors with better liquid positions, there are the CMS products for short term gains.

A solid portfolio with carefully selected stocks tends to weather bear storms that cause value erosion. We have seen paper value erosion on most of the listed companies, but several companies like Safaricom , Kakuzi , Sasini , Kenol Kobil , Bamburi Cement , Kenya Re , Jubilee , etc. have continued to defy market trends and post growth in their market caps.

A major problem many investors exhibit is trying to time the market, yet lack sound guidance on equities investments. They buy good stocks expecting perpetual gains, sell them at the first instance of a price pullback, then rush to load cheaper penny stocks that will supposedly double within a short time, fundamentals notwithstanding. These penny stocks are eventual value traps. At the extreme, these investors dispose of everything at huge losses and depart the market completely, never to return. Essentially, they sell good stocks and buy stocks that are worse than what they sold, all in the pursuit of quick profits. That’s a problem when strategizing for a bear market at the NSE.

People panic-sell and never get a chance to prepare for the rebound because they are too frightened to get back into the market and their own impatience and short-termism costs them an opportunity to grow their portfolio wealth during market rebounds. As history has proven time and again, rebounds always happen and they reward the strategically patient investors.

During the last NSE bear run, the 20-Share Index  bottomed out at about 3100 points in January 2012, having come down from a low bullish peak of 4675 points in November 2010. At the rebound, we were about to have the 2013 elections and so the mood was quite politically heated as it is now. The US had just had their elections, with Obama winning a second term. Before then, the last bear had bottomed out at an ugly low of 2450 points in March 2009 (businesses had been totally disrupted by PEV), having come from a peak of 5550 in September 2007. The index is currently tinkering between 2900 – 3000 points mark, having hit a 52-week low of 2790 points early last month and coming down from a bullish peak of 5500 points in March 2015.

Intelligent investors are busy purchasing stocks now, such that when the market recovers, their portfolio averages will be low enough to start gaining earlier than their counterparts who are waiting to start buying when the hype about markets rebound hits the mainstream news channels. Instead of panicking and staying on the sidelines waiting for the best entry points, people should buy now because indicators are already pointing at a market that is bottoming out.

Source:http://live.mystocks.co.ke/

Tags: Investing Through Nairobi Stocks Exchange (NS) Bear Runs
Previous Post

Police Arrest Seven Suspected Al-Shabaab Financiers In Malindi

Next Post

9 Kenyans named in top 100 influential women in Africa

Related Posts

DP Ruto picks Rigathi Gachagua as his running mate
Kenya

DP Ruto picks Rigathi Gachagua as his running mate

May 15, 2022
Muteshi Land Grabbing Case Haunts Ruto
Business

Muteshi Land Grabbing Case Haunts Ruto

May 13, 2022
Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance
Diaspora

Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance

May 13, 2022
Five Reasons Why Real Estate Increases in Value
Business

Five Reasons Why Real Estate Increases in Value

May 13, 2022
Kenya:9,484 children were defiled last year— Health ministry
Health

Kenya:9,484 children were defiled last year— Health ministry

May 13, 2022
Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia
Diaspora

Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia

May 12, 2022
Next Post
9 Kenyans named in top 100 influential women in Africa

9 Kenyans named in top 100 influential women in Africa

Please login to join discussion
Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply.
ADVERTISEMENT
ADVERTISEMENT

Latest News

DP Ruto picks Rigathi Gachagua as his running mate

Muteshi Land Grabbing Case Haunts Ruto

Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance

Five Reasons Why Real Estate Increases in Value

Kenya:9,484 children were defiled last year— Health ministry

Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia

Kenyan Nurse Wins Sh29 Million Global Nursing Award in Dubai

Russia Questions US-Funded Biolab in Kenya

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

Canada Issues Travel Advisory to Its Citizens in Kenya

We are grateful for your monthly or one-off donations To Samrack Media: Cash App No: 781-888-8770 $SAMRACK001

Money

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

by samrack
November 19, 2021
0

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency This week sees the launch of a new initiative to equip...

A simple guide to Government Bonds investing in Kenya

A simple guide to Government Bonds investing in Kenya

by samrack
September 17, 2021
0

A simple guide to Government Bonds investing in Kenya A treasury bond (T-bond) is a medium term to long term...

Politics

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

by samrack
May 11, 2022
0

GOVERNOR MUTUA'S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!   Governor Alfred Mutua’s...

You are free to use Nairobi expressway from next Saturday – Uhuru

You are free to use Nairobi expressway from next Saturday – Uhuru

by samrack
May 8, 2022
0

You are free to use Nairobi expressway from next Saturday - Uhuru Other than the ban on photography, skaters, pedestrians,...

  • About Us
  • Archives
  • SWG Registration

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

Page generated in 0.863 seconds. Stats plugin by www.blog.ca