In a bull market like last year and Jan/Feb this year, there was a full house,
but when unpredictable bear set in recently , not much is heard from the crop of intelligent analyst we have here Most of us (including myself) did not forsee this. The reason being that in stocks some events beyond our control can make the bear to rear its ugly head. Companies are returning salutory results with sound fundamentals but most of them are dropping beyond their fair value, others are just stabilizing below par.
However you look at it stock prices are cyclical, there is always the party time and the dull moment. I learnt this hard fact in 2008 when I was putting all in my investment in one basket stocks.
I have since adopted a balanced strategy in investing in different asset classes :-
- Stocks, Real Estate, Fixed Income, Savings in foreign currency. This reduces my exposure to market turbulence.
This reminds me of a friend who converted KSH 77 per 1 USD six months ago as a leverage, he decided to change from USD to Ksh at the current rate of 82+ and used that to buy some KPLC and KCB at the current
discounted rate , he did not forsee that but when this opportunity becons, he took advantage.
On the whole when the bulls return, the blue chips or I would I call foreigners or fund managers stocks are the ones to recover faster, and they still return salutory dividends.
But be aware that the best time to invest is at times like this when most of us have pessimistic view of the market. But for your own interest let it be blue chips. You know them so I may not name all of them:- EABL,KCB,KPLC, ARM etc.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .