The second longest bear market since the 2008/2009 cycle seems to have come to an end with 2018, as the month of December resisted further decline on the strength of Santa Claus and end of year rally to halt the downtrend, closing green.
So what does 2019 have in store?
If it is anything like the end of 2018, the instability witnessed in the previous year is likely to continue before and after the 2019 presidential elections that is less than 45 days from now, when Nigerians will decide who becomes President until 2023.
Despite the possibility of a bearish trend continuing into this New Year as a result of January effects and other factors that had affected the market before now, this is the time to start positioning in stages ahead of this month’s meeting of the Monetary Policy Committee (MPC). Investors and traders must also begin to position ahead of new economic data, outcome of the February 16 Presidential election expected to shape the market direction, as well as the 2018 full year earnings reporting season.
Market breadth and index performance at times can cause problems for analysts and investors, because using the NSE benchmark All-Share index alone, for example, as a proxy for what is happening in the market can sometimes be misleading.
But, depending on how the index is calculated, a small number of stocks can drive its movement, covering what is happening to other stocks that have less of an impact on the index’s valuation.
Specifically, high cap or blue chip stocks exert the greatest influence on the index’s value, which suggests the importance of watching these stocks because they lure smart money and institutional investors. The current divergence in the intrinsic value and market price of many equities has created opportunities for investors and traders, for the simple reason that every investment is against expectation.
At the end of 2018, the NSE All Share Index had dropped back to down to a negative breadth position.
Some traders may have become discouraged by these negative signs and opt to seat on the side lines, but discerning investors and contrarian analysts will however fix their gave to see support levels and end of the bear run showing it has finally run out of steam.
To pick these undervalued stocks in the 2019 investment opportunity, kindly sign up for Investdata buy and sell signal setup to get all our in-depths analysis on the picture and to get access to our carefully created watch list. To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. The number of stocks on our watchlist has increased due to the prolonged market correction. Take advantage of this service to buy right and sell right.
RE: INVEST 2019
The difference between you and others who are not aware of what I am sharing with you is ACTION. Take action that will transform your life throughout 2019 and beyond by getting the Just Concluded and life transforming INVEST 2019 TRADERS & INVESTORS SUCCESS SUMMIT Home study pack (USB) that you can play on your phone, Laptop and Television set. The event, which held on Saturday, December 8, 2018, was yet another successful, insightful and educative outing that not only offered direction as to where investors should look for a profitable 2019, but industries, sectors and companies to seek worthwhile returns. What stocks should you buy? Grab the pack for the 10 Golden Stocks with possibility of offering in 2019 multiples of what broader stocks do, coming out of this market correction environment.
Don’t sit on the Fence call or text Stock to 08028164085, 08032055467, 08111811223 now.
Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
