BEAR RUN

The post SAFARICOM IPO effect has caused the longest bear run witnessed at the NSE in a long while. Market Capitalization has lost a staggering close to 300B in the last seven weeks or so with no signs of abating yet. My own portfolio which had shown signs of inching upwards after the post election fiasco has moved into the red zone. What strategy should investors take?

First it depends on ones rules of engagement at the bourse. For speculators, dumping positions here and there and cashing on the discounted counters with a view to even out in the long run is the way to go.

For those on a long haul, hopefully with extra cash to invest, buying more into those counters one has taken a position on should see a reduction in the red figures. Woe unto those whose total investing cash is already tied down on the fast sliding counters. My advice to the latter category; just make observation of the market trend in general, without too much focus on your counters, this way, even though you are losing value daily in the bear run, you save your heart from too many unhealthy jolts.

Which category am I in? I am a long hauler and has never sold any stock at a loss. Lets keep our fingers crossed that this thing is ending soon otherwise there is no economic fundamentals to justify the massive losses that have been experienced.