This is a great post by my good friend Kwabena Amo-Mensah on the state of the stock market and why you should still invest despite 2016 elections. Follow his new blog, FINANCE AND MORE.
Finally, 2016 financial year is here and investors are poised for a great investment year backed by rigorous analysis and best investment strategies.
In adopting the appropriate strategy for the year, investors would be concerned about the impact of the 2016 elections on the stock market. Election years in Ghana are characterized by high deficits, rising inflation as a result of excessive spending, low direct foreign investments, declining cedi and rising interest rates. Following this development, most investors adopt a conservative strategy by investing in fixed income instruments or a “wait and see” attitude as they hold a pessimistic view on stocks.
In spite of the relative gloomy picture of Ghana economy in election years, the stock market would perform better than 2015 based on the reasons below: ……Click to read more….