Some of you, out of the MTNGH IPO buzz decided to taste the sweet venom of the stock market for the first time. Despite the dangers, most of you are still standing tall. It’s a great start. Do well to use your December to plan out a good investment routine and strategy for 2019. One important thing you shouldn’t forget is to focus on the long term despite the short term ups and downs. To be frank, there will be countless times where stocks will fall, sectors will perform badly and even the entire market will recess, however with the long term focus and your strategy, you shouldn’t panic.
This year, the market started by recording tremendous gains in the first quarter reaching some year highs bringing some much attention to the stock market. The second quarter also was characterized by alot of activities, climaxing for with MTNGH IPO, the largest IPO in Ghana. This brought alot more interest in the market at the mercy of the other stocks and investments options. The ripple effect is being felt till now and expected to last till year end.
The third quarter saw a market meltdown as tension and uncertainty build in the Financial sector pulling the entire market down further coupled with poor Q3 earnings from some market movers. The final quarter has nothing significant to offer except signs of recovery in the offer and bid volumes of some fallen heros like SCB, ETI, EGH & SIC.
2019 – Two things to do:
1. Set aside a portion of your income to accumulate some shares in some listed companies. Mind you, I said ‘accumulate.’ not just a one time purchase. This starts from proper management of your expenses and income more regularly.
2. Seek expert advice on how to pick stocks and allocate funds to the various securities in your equity portfolio. Adequate asset allocation is equally important as selecting or choosing an investment. Do not take that for granted.
Keep investing as we usher in a new year, 2019.