The Bulls Will Return
by: Uche Vera I
In the wake of the third week of the second quarter of this year ,the stock market suddenly started going down .There was a kind of panic .The panic was understandable considering the fact that our market before then had been characterised by huge returns .And the beginning of this year was no exception .So obviously one has to panic when the bearish trend developed .
But if you had enough information ,you would know and understand that there was no way our market will remain in a bearish position .Ours is a developing market and it is an understatement to say that the potential for growth and returns in the market is huge. Let me give you a clear example .America has a population of over 300 million, a GDP in excess of $13 trillion and a market capitalisation of $15.35 trillion.South Africa has a GDP of $282bn and a market capitalisation of $759bn .In Nigeria we have a population of about 120 million ,a GDP of $160bn and a market capitalisation of $90 bn .Only about 2 million Nigerians are investors in the stock market .That is less than 3% .In the U .S 49 .7 % of the people invest in their markets ! The bulls will return. This clearly shows that our market in still emerging .
More people will definitely enter the market ,capitalisation will move up ,and more companies will get listed on the exchange .So the potential for more activities is quite huge . The Nigerian stock market is the best in the emerging market category of stock exchanges and among the best on return on investment .So ,the bulls will return. By the beginning of 2007 ,market capitalisation stood at N5.12 trillion and by December of that same year it has appreciated to about 100 % to N10.2 trillion .By the time we entered the third month of this year ,the market has appreciated by more than 20% to N12.6 trillion . Afri Invest west Africa recently in it's half year result collaborated the belief that our market will witness a steady bullish trend in the nearest future . So what is my point ? Even though the market is experiencing a bearish trend/volatility ,major indicators are strong and with the recent intervention of market regulators the correction of the market could have started in earnest .
What are you buying !! Our experts are suggesting that Transcorp should be included in your buying potfolio but definitely not in your selling . Starcomms joined the market on Monday at 13.56 . and gained close to 1.00 that same day .Wether it is a good buy ? Telecommunications is presently a lucrative sector and starrcomms has been involved in expansion projects ,so it is a good buy and it should be one of those equities you might want for keeps. Enjoy the rest of your week .
COPYRIGHT( C) 2008 Uche Vera Uche Vera is a journalism major .She writes on Business and Economy including general topics .She is a senior procucer and writer with a radio production outfit that specializes in business programming .visit her blog at http://financiallquotientt.wordpress.com
Successful Stock Market Investing
By Oliver Gillies
Before entering into the markets at any level it is crucial to have a working knowledge of the dynamics of the stock markets and the main influencing factors.
These will be briefly touched upon. The main influencing factors are likely to be economic, such as inflation, interest rates and GDP. A variety of other factors are likely to have an effect, relating to possible geo-political factors (i.e., wars, civil unrest), also political uncertainty generally has a profound effect on the markets.
From this we can see that there are a wide variety of variables that are going to affect the markets as a whole which will ultimately determine the supply and demand of direct equities.
There are a general set of principles that you should adhere too constantly in order to reap the rewards that the stock markets have to offer, below I will outline some of these universally accepted principles for experienced private as well as institutional investors.
•Set a concrete nominal value you can realistically afford to invest. For example if you go out to the bookies to bet on the horses you would generally have a set amount to spend and once you reach that level cut your losses or cash in. What I am trying to convey is discipline and routine which is essential for consistent returns.
•Do not treat the stock market like the lottery. It is a skill that needs to be mastered and perfected to “trade effectively”. Be in it for the long term and like anything in life essentially the more skills you build the more effective you will be.
•Eliminate as much risk as possible by doing your homework on a stock you are going to invest in. Information is freely available more so than ever especially on the internet. You will be able to locate company accounts and assess the general health of a company through a variety of sources.
•Diversity is truly the key in the markets. All the big guys know this in the markets usually “hedging” their large position’s with an inverse position or more stable position. Do not put all of your egg’s in one basket as they say equally spread capital over a number of positions.
•If you loose money on one position it’s not the end of the world all of the massive guy’s the Karl Icon’s and Warren Buffet’s would have if not still loose money in the markets. Try and look at every event as a learning experience on which to add to your arsenal of skills.
Oliver Guillies is a Graduate working with a firm of Stockbroker's in the City of London. He has a passion for travel amongst other thing's. If you want to read more up to date articles and opinion's on Oliver Guillies blog Click Here
Article Source: http://EzineArticles.com/?expert=Oliver_Gillies
