Stock Market Wahala!

The Great Depression began after the stock market crashed in October 1929. During the 1920s, many Americans had bought stocks—shares of ownership in companies. They hoped to make big profits, and they borrowed money to buy stocks.

When the stock market crashed, stocks lost their value. Some stocks became worthless. People who had put their money in the stock market lost most of it. They still owed the money they had borrowed to buy stocks. In just a few weeks, stocks lost $30 billion in value.

Nigerian stock exchange, NSE, will also be going through what happened to America stock market in the year 1929, if nothing is being done to correct the irregular, nonstandard, uncharacteristic, atypical, anomalous, unusual, strange, odd, deviant, aberrant, malformed and messy state the market is presently going through.

I was not too surprised the last time I walked into my stock brokering firm and saw hundreds of Nigerian trying to sell their stocks because of the regular depreciation of share price.

Listed equities on the floor of NSE are now losing their true worth on daily basis, while some have become worthless due to what an English man will call policy alteration, adjustment, amendment or reformation, .

Most short / medium and even the long team investors who had invested their hard earn income in blue chips stocks in 2007/2008 hoping to reap munificent at the end of the year are now suffering from high blood pressure. And for those that borrowed funds from banks and other financial institutions are now running helter scatter looking for remedy.

The truth is: Investors have lost total confidence /interests in the stock market that started early this year with all kinds of perks. And for those who called themselves the market bettor, gamester, speculator and high roller have all gone into hidey-hole.

Recommending any company’s stock now may be perplexing.

Though, stock forecasters, analysts or specialists are saying this is the best time to buy, but the big question is: who is ready to gamble?

I still believe we have thousands of Stock bettors / genuine investors out there who still want to risk f their money for profit, but they are some fundamental questions they need an exigent answer for before losing their hard earn income. These are some of the questions.

When will all the abnormalities end on the floor of NSE? Is there any bailout plans for the market? What is SEC, CBN, The House of Representative / Senate and other regulatory bodies doing to help the situation? These are fundamental questions investors want an exigent answer for before entrusting their hard earns income into the hands of their brokers.

I will wan to end this piece by saying, license me to say this to whoever cares to listen; the market will crash anytime from now if all the so-called regulatory bodies keep doing nothing to stop all the abnormalities the market is currently going through. And this is to say, you can also burn your fingers or lose your esteemed equities if you invest your money in any stock without carrying out proper investigation.

Don’t forget equity investment or investment of any kind is a risk that is only meant for investors that has a rich mind.