If there is such a thing as Monday blues, stock markets typified jana. FTSE 100 was down 5% at one time and Nikkei closed at its lowest for 26yrs. Our own NSE is now on a free-fall and its painful to visit stockskenya and read all the wailing with some even asking that fella from Nyeri to do something...
They are the not only ones. If there is anybody who feels hot in the investing world, it has to be hedge funds. Most hedge funds actually promise absolute returns on your money (of course they are not an accessible investing avenue for joe public). Many are now heading one way. Down and out. And are behaving oddly too. VW was today ranked as the the largest company in the world by market cap, thanks to hedge funds scrambling to cover their losing short positions. "Some in tears", is not something I ever thought I'd read in the same sentence as hedge funds.
As this guy avers, trying to forecast the bottom (a key entry for many) is an exercise in futility primarily because the market is emoting. There are very few traders out there who are being logical about how they trade. All they know is that they've to cover their losing positions. WB can afford to put his few coins into the market now and watch them flow down. Fundamentally, he has made it. For some of us who are making it now, chasing prices downward is a bit like this annual exercise they do in Gloucester where they chase a big mountain of cheese downhill. Every year, you get many breaking legs and hardly anyone ever catches the cheese.
Interesting the silence on the Co-op IPO which kicks off this Thursday for a fortnight. You'd hardly know it from the deafening silence in all blogs and investment banks. Only AIB sent something via its customer clerks. One consideration is that Safcom IPO despite the all the hype is now trading at ksh3.10.
NSE conspiracy of the day: Was Murigu pushed or did ill-health finally decide for him. The evidence for a push is that practically all the brokers are in the painful grip of losses made when attempting to become day traders. Also as the pioneer of the otc market, he'd surely have wanted to be the launch it. Against that, he has been unwell for a while.