The capital market has been bearish for a while now and investors have seen the value of their investments go down seriously. My esteemed readers would recall that I warned on this blog sometimes in February about the need for people to be careful where they put their money .I had warned then under the caption ‘caveat emptor’ because I noticed that most of the stocks had appreciated beyond their fundamentals. The chips are down now and most investors who bought some of these stocks without considering the fundamentals are now crying because they have lost a lot of money to the market correction.
I am however, confident that the market is not going to crash. In fact the market will pick up again very soon but investors have to be careful this time around. They must look before they leap.
I want to tell you authoritatively and with responsibility that this is the best time to invest in the capital market because most stocks promise superior returns. .This is because stocks with sound fundamentals are not spared out of this price depreciation. How else could one explain GTB’s price @N22 naira? What of Oceanic Bank that has an EPS of close to N2 doing at less than 20 naira.
This is an indication that the good times are here for those who will invest now and wait to reap handsome rewards in future.
Investors who know their onions know that the best time to invest is when prices are down. By this I mean you should buy when others are selling and you should sell when others are buying.
I want to tell you authoritatively that very soon the bears would give way to the bulls very soon.
Keep investing !
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Wednesday, July 23, 2008
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