STOCKY

2008-11-11T03:35:00.000-08:00

The on-going trend in the world trading market has left so much to be querried. I've heard and watched many outburst of angered emotions about what's happenning in the global financial market, with the stock markets taking the much venoms.

It is of note to see those who claimed to have lost whooping sums of money crying for help, with many wearing Despair looks, calling on the world governments to come to the rescue of the Stock market, and thus save it from a total collapse. According to them, there is bloodletting on the street. And yet, I've trekked almost all the streets in Lagos hoping to find some human blood. Yes, truly, I saw blood - blood of rams killed during the recently celebrated id-el-fitri. And very soon, there'd be more blood on the streets - those of unfortunate rams and chikens that'd be slaughtered at id-el-kabir and xmas. Hmm!!!

Of note was an elderly man, interviewed on the television, who claimed to have lost N16 per share. I couldn't help but ask 'why did he lose so much'. I wish I had the opportunity to meet and ask him series of questions, especially one bothering on how he came to find himself in such a mess? But that isn't possible. What a pity! I couldn't ask him who was his financial advisor - was he a genuine Stockbroker, or one of those fraudsters, who masquerade themselves as sound Stock analysts?

What am I saying?

The stock market, as we all grew up to know it, is a save haven for those who truly and genuinely desired to invest their hard-earned money (stockbrokers) into performing quoted companies, with formidable fundamentals, in order to earn extra income in the form of paid-out dividends and bonuses, aside from watching such money grow into a solid investment that could guarantee a rosy retirement from active service. But sadly, such a noble desire has suddenly turned into a get-rich scam, by a few who thought they could upturn the augean stable.

As a result of these few 'know-it-all' individuals, who were fortunate to witness a quicker and higher Return On Investment, and turned themselves into stock analysts, the ignorant and greed investors are now licking their wounds. How else can one describe the overnight 'Stock Investrment Experts' who organise seminars, to inform the public on how to make quick, bogus profits from the stock market, in a very short period of time? Many people went to borrow money and blindly invested it into the stock market, promising their creditors a refund with juicy interest in a short while. Some even plowed all their gratuity into the market, expecting a big ROI within one week. Haba!!!

This was the case of a friend of mine, who sold his newly-bought car and invested the money on FCMB stocks (at N19.90), on the recommendation of his stockbroker, who assured him that the bank's share price would climb to N59, by september, 2008. And he wanted the money to buy a jeep by December.Hmm!!! He turned a deaf ear to my pleas not to commit such an investment suicide. But to him, his adviser could do no wrong, as "he had done all his due diligence very correctly". The question now is how much has he made from the stock.

The banks are also liable for this mess we've found ourselves in. They gave out loans, on margin, to some of their customers (with collateral, of course), and even dictated to them what stocks to buy and at what price.

Now that people are cryin, shouting, wailing, and gnashing their teeth that the stock market is collapsing, I can hardly find those who are asking whether it is the market that is actually collapsing or the greedy businessmen and women, who parade as genuine investors.

My question is if many people are really losing money, are the companies losing or gaining? Are the fundamentals still positive or negative? Answer these thought-provoking questions honestly, and truly, truly, I say unto you, you shall know if the market is descending or ascending.

Your heart is where your money is.

STOCK TRADING

STOCKY