Kenyans lack of awareness on how to trade in the money markets denies them a great opportunity to have their money work for them.
The money market is where financial mechanisms with high liquidity and very short maturities are traded. Participants use it as a means of borrowing and lending in the short term, with maturities that usually range from overnight to just under a year.
Whenever elections approach, market shares go down, Kenyans rush to sell at losses scared that their shares could totally lose value. When they sell at a loss, the market smart individuals’ rush to buy for only they know that once down, the only way to go is up.
Money markets are not the place to make money you have other budgets for in the near future, it is a place you put in your money and for some time, forget about it. Though it requires in-depth research of the market, one can easily invest with an insurance company which will then invest for on their behalf.
Shares are crucial to the economy because they are a significant constituent of most stock portfolios. An investor can either own shares directly or indirectly through mutual funds.
An investor needs to first understand how and when to buy and sell shares, transfer, immobilize and transmit.
The research involved is cumbersome and takes a lot of time which is why companies that trade such as Banks and insurance companies provide their customers with financial advisors who can break down the information and keep up with the market trends to advice on when one can trade.
As festivities kick in, spend wisely knowing the long January is soon to be with us. 2019 should have you saving smartly to ensure you meet your resolutions.