Talking Point
Hope Is Coming In The New “ New ” Normal And Why You Should Invest Like A Girl
By Boniface Ngahu
There has been a lot of sad stories about what is happening in Kenya and globally . Some of the stories show how people have been affected by “ Black Swans ”. According to Lebanese-American author of the books Black Swan and Fooled by Randomness , Nassim Taleb , for an event to be viewed as a black swan it has to be rare and extreme that it can be seen through the prism of rationality later on .
We have discussed such events here including The Pandemic , War in Ukraine and now the rapidly increasing cost of living as demonstrated by increase of fuel price in Kenya past two hundred shillings per liter , an all-time high which according to some public figures might go up to three hundred shillings before it can start declining .
I want to share some good news that should give hope to the hopeless and those with a general negative outlook of the economy in Kenya and anywhere in the world . That hope is in what is being referred to as the New , “ New ” Normal .
My cool hunters in the investment world brought this term to my attention and it triggered some inspiring thoughts about the likely trends in the near future .
The Trend is Your Friend , New Opportunities are Emerging for Keen Investors
One of the things we have always mentioned in this column is that , it ’ s always inspiring to remember that the trend is your friend . This means you should always find a way to ride with the tide rather than ride against it . In matters global economics , looking at the IMF ’ s forecasts and historical trends we see two major dips , one during the Great Recession of 2009 and another during the 2020 Covid-19 pandemic . The global economy rebounded strongly in 2022 a period during which we experienced overspending by governments in particular the US government leading to runaway inflation .
If inflation is too much money chasing too
Girls are better investors than an average man . One of the reasons for this is that their temperament helps them to achieve long-term success in the market . They carry out more research on investment choices than men , they are less susceptible to peer or beer pressure , they are more level-headed , crowning it with a more patient approach to investment . few goods then that was the situation the effect of which is that the US government increased interest rates leading to an increase in dollar valuation against other currencies . Financial markets analysts predict that the rise in US interest rates is almost over , not right away but say by 2026 , 2024 to 2025 the projections are flat or minimal increases . This calls for keen individuals in other economies to spot the trends in order to identify the opportunities that will emerge as the world adjusts to the New “ New ” Normal .
One of the low-lying fruits in this situation is that as many foreign investors pulled their money out of poor and emerging economies in what is termed as flight to safety , the dollar being the safety haven , this has led to historically low valuations for attractive investments in the global south markets such as the Kenya ’ s Nairobi Stock Exchange ( NSE ).
If you choose to go the stock market way , remember that the stock prices go up and down . You can also choose to invest like one of the best Investors in the world Warren Buffet who is said to invest like a girl .
Why You Should Invest Like a Girl
The investment world was traditionally male dominated , this has been changing gradually with women getting a fair growth of their share in the industry . Our past study at SBO Research in conjunction with Chartered Institute of Marketing ( CIM ) showed a link between the financial sustainability of listed companies and women inclusion in the boardroom among other positive indicators of the benefits of inclusivity at all levels .
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