Clearly English is a 2nd Language so lemme explain my call above...the call was made some weeks ago btwn

1. The first part talks about a correction from the 5,000 mark...its happening....YES or NO?

2. The 2nd part talks about the bull run ending...note there is a difference between a market top & a market correction/pull back.

If T-Bills continue to decline then the market will find support....if they spike I can tell you it will be OVER!!! NSE bluechips are overvalued at current prices...new catalysts are needed to keep the current bull run alive thats why I talked of strong earnings...low lending rates etc

1. We are still trading in a bullish channel so the bull is still alive for now

2. T-Bills spiking depends on fiscal deficit...I assume UK will go on a spending spree to achieve his desired growth rate... the question is how will he finance it? local/international borrowing? Local borrowing means high yields on T-Bills...high local interest rates...the current scenario where inflation is below 4% while lending rates are at 17% clearly explains my sentiments above. So for UK to achieve his desired growth rates...he needs to drive local interest rates lower....put MONEY/LIQUIDITY into the hands of Kenyans..but there is one baby called the KES....remember what happened to the KES when interest rates hit rock bottom? UK was the Fin Min...to cut the story short KE econ cant grow at 10% in its current state...it overheats! So structural reforms are needed.

3. NSE bluechips means SCOM (operates in a mature market...can't expand)....EABL (huge Diageo loan)...BAT (strong KES)...maybe Banks! Bottomline: NSE bluechips are overvalued compared to their peers i.e compare MTN vs Scom on PE & DY basis etc

Some are saying that UK is going on a spending spree to take the economy to 10% growth... This may be true but there is no rule book that says he must borrow!

I have said time and again that a lean government can save at least 100billion in wage bills p.a! This money can be channeled to fulfil all those Jubilee promises without affecting the debt market adversely!

As for the stock market... Although we are going through a correction it is unwise to sell anything you own because I have a feeling that this will be the cheapest stocks will ever be for at least a generation! (read China growth rates vs market P/E ratio)

#And_We_Thought_Foreign_Investement_is_Already_Here #Bado #Tumeona_Kionjo_Tu #Its_Coming_And_Its_Big >>> “Money may not have come in yet, but the outlook and interest in the local economy by foreign investors is good. The limitation is actually in the instruments that they can invest in,” said Mr Musau. >>> Said Standard Investment Bank (SIB) analyst Mr Eric Musau

the current market environment is the true test of an investors mettle. no more easy picking or rallies from euphoria.
happy hunting indeed