Friday, May 18, 2007

back to base

judging by the recent events at the NSE as well as the sentiments expressed by some of the investors, its pretty clear that the NSE has bounced back to its base of before the 2002 elections. during that time the market wasn't excited yet people were still making money. how did they do it? they traded on such counters as KQ and MSC and what they kept doing was buy MSC at 3 bob and sell at about 5 or 6. MSC then was always the most traded counter but it never went beyond 6 bob. that only happened much later in 2003. the same was being done with KQ which kept seesawing between 8 bob and 11 bob. Right now we are seeing the low priced stocks behaving just that way and for the active trader this is a wonderful chance to make money anyway.

Other areas to make money include money markets. however this time, it may be difficult to predict. one would have expected the shilling to depreciate at about this time due to uncertainty but the opposite is happening, you wonder whether upon the conclusion of the elections the shillings will become even stronger. according to an article of Maina, an analyst, there must have been money printing happening just like in 1992.

however if things remain this way then one is tempted to imagine the shilling at the 50s region by early next year. this is because even the dollar is actually loosing it.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.