dunkang wrote:@deal, the same was said between 2012-2013, i stocked dollars (10K to be precise) only for the market to think otherwise.
What am saying is that, LET THE MARKET DO WHATEVER IT WANT. I can't control it, neither can you! TUKO TAYARI
Dunkang when its comes to the so called "economic cycles" its better to look at the global trends rather than look at the local market in isolation.
In 2012 the US economic was in doldrums. Then in Sept 2012 the Federal Reserve came up with an economic stimulus dubbed Quantitative Easing (QE), a fancy term for pumping cash money to the tune of $85B into the economy.
Guess where the extra cash went to? To financial markets, instead of the productive sectors of the economy... surprise, surprise!
As a result in 2013 the US stock markets climbed by 29.6% (S&P) and 38% (NASDAQ) the biggest rise since late 90s.
A good chunk of the money went into foreign markets notably the beaten up economies of Europe and Frontier markets of Asia and Africa. Consequently Greece, Iceland and Ireland were on the list of top 10 performing Exchanges as were Pakistan, Nigeria and Zambia.
The Fed is gradually reducing the amount of money pumped monthly into the US economy, ending the programme altogether in Dec 2014!
The party is about over. The big boys have eaten the choice cuts. In 2014 the scavengers will be picking the bones and skins and in 2015 Wanjiku will be cleaning the mess.
Life is short. Live passionately.