Bad news!! Shares will go DOWN Horribly!! MMF will go up!

Added: 2026-05-27

[00:00:00]bad news. Stock market or shares will go down terribly. Or should I say horribly.

[00:00:08]For the next fewish weeks or a month or so, you're likely to see the shares going down very very horribly. Ask me why. That is why I'm making this video.

[00:00:20]Should you panic? Should you sell them?

[00:00:22]Should you buy? What should you do exactly at this time? That is what I'm going to share with you. This is good, Joseph. Just relax. Watch this video.

[00:00:29]It's less than 15 minutes and you might actually learn a lot of things out there. Now, by the way, don't also forget to hit that like button. Make sure that you subscribe and ask me a question on the comment section. I try the best I can to answer those question.

[00:00:42]Even if it I'm compelled to make a video, so be it. Now, for the next few weeks or a month or something like that, you're likely to see the shares going down. Why? Hm. There's a video I made last and I said Kenya in Kenyan inflation has gone up to 5.6%.

[00:01:02]That should worry you. That is a significant number. The central bank of Kenya recommend a midpoint of around 5%.

[00:01:10]Now we are at 5.6%.

[00:01:14]That is 0.6% above the recommendation.

[00:01:18]What does that happen? And I want to explain step by step so that you understand. All right, are you with me?

[00:01:24]I'm going to use a very simple English.

[00:01:26]If we can go back last year, that is 2025, stock market was ah the best.

[00:01:32]Everything was going up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up up sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh sh shares were showing green green green. Then I know you were not keen but if you go check how the inflation was back then we are in the zones of 2% 3%. Inflation was way low than the recommended midpoint of 5%.

[00:01:50]This is where I want you to I want to understand here whenever you see the inflation is lower there and then the central bank of Kenya is reducing the base lending point now we are standing at 8.75 that tells you the capital market becomes undesirable in other words things like money market funds things like stock I mean what do you call them the bond um the treasury bs the treasury bills the interest goes down. So who that when that happens the investors shift to the stock market everything goes up but now it doesn't go forever the market reverses as it's happening right now because also the central bank of Kenya them revising the base lending from whatever the point it was to now 8.75 has an effect on the inflation now we are at 5.6%. What happens? The government is likely to revise the rates upward from now 8.75 probably upward to 9 to 9 something. The moment that happens the interest on the money market funds goes up. The interest on the treasury bills and treasury bonds goes up. Are we together? Therefore in another the other side the what comes is that the the you know borrowing money from the banks and what have you becomes undesirable. So the capital market goes up then the stock market goes down. So when the inflation goes up the infl I mean the inflation goes up the stock market tend to revise downwards. Number two, we are in the situation whereby we are likely to go to the next election that is the next year general election and of course our market is dominated by the foreign investors and they tend to kind of withdraw whenever we are heading to a in any general election and that happens to any given country but that may not have a very big big big major effect because we are not that near to the elections but we're going to see this you know sort of like you know largely portrayed that is next year. But for now, the inflation will is having a very big effect on the stock market.

[00:03:59]Number three, we are having these companies paying people. We are in the era where these companies are paying.

[00:04:05]Most companies are paying the dividends that they announce. So in other words, money is getting out of the stock market. People are being paid and obviously we have a lot of foreign investors. So money is getting out of the equation of the stock market. So those three factors are contributing to the shares going down or the performance of the shares going down or should I say the reflection on the Nairobi securities exchange becoming undesirable to an average investor. Now the question is should you buy or should you not?

[00:04:39]The true investor already know the answer. You should buy like a crazy person. Why? because you are getting the opportunity to enter into the market with what we call low prices. That means that you can average down your stocks.

[00:04:54]I'm going to use my own case scenario.

[00:04:57]Like few weeks ago, I bought KCB shares at around 68 shillings. The shares now is around 66 shillings. Obviously, I'm on red. Are we together? I'm on red.

[00:05:08]Okay. Overall, I'm not on red because I had bought some other previous shares when the KCB was way low. But assuming that I did not have shares, I'm on red.

[00:05:16]That's a fact. But then if the shares come down all the way say from 66 say to 50 because it can happen. Therefore, I can even buy more on 50 so that I average down my price. I average down my price. We together about that. So it is the best time to buy especially when these prices seriously goes down. See a time will come if you seated there watching this video and you realize that most people are saying stock market is not good you know I'm seeing red I'm seeing red when people are running away from the stock market that is when you should run towards that stock market for their post opportunities for you to invest there again let me emphasize on the point of the inflation the point of inflation affects the stock market when the inflation goes up what is actually goes synonymous with That is the capital market we are likely to see. You remember there was a time the money market funds we had even interest of 16%. And the treasury bonds we had the interest of even 18.4%. I think that's the highest recorded so far. We had a 9.6% inflation. There was time we had 9.6% inflation almost to a double digit number.

[00:06:31]You remember that time? And the stock market were performing poorly. The KPLC shares and the what have you. they were one shilling. So when the inflation goes up, it actually discourages the investment on the stock market because people now chase better returns. So if you're seated there with your cash, this is the best also time to invest on the cash or cash equivalents such as the money market funds, the fixed income fund, the what do you call them the treasury bonds and what have you because we are likely to see bigger returns or bigger interest coming up on that particular end. On this end, the shares is likely to go down. But I don't want you to confuse the price on the shares going down on the Nairobi Securities Exchange compared to the real performance of the company. For example, I'm going through the performance of companies examples of we have INM has released their financial uh news for the quarter one. The KCB has done the same and others are releasing the news. And when you check the performance of these companies for the quarter one, it's performing exemplary. probably next year, God willing, we these companies are likely to announce even bigger returns for the dividends, probably even bigger than this year. Well, again, I'm not saying I'm perfect. That can be also be opposite depending on how the market is going to perform. So, as a result, please do not confuse the fundamentals of the company, the real on the ground performance of the company and of course how the noises are on the Nairobi Securities Exchange. So we are likely to see that unless because probably what I can predict is that the CBK will actually go ahead and revise the interest rate upward to revise the interest rate upward to encourage people to invest on the government securities to actually sort of like control money in the inflation or money in the circulation to actually try to bring down the inflation. You know why? When they actually started to lower down the base lending point, I expected the inflation to go up. Luckily or miraculously it didn't happen. They revised again. It didn't happen. They revised again. It didn't happen. They revised again. Again, it didn't happen.

[00:08:33]But now all that was not happening. It's actually being reflected because at the inflation of 5.6% that is a very high inflation. Are we together? And of course this CC of fuel is also affecting the performance of this economy of ours.

[00:08:49]The CPI is going up and everything like that. So we are likely to see the stock market going down. Do not panic. Just relax. just know it is the best time to actually buy and this is what I will do and this is what I can encourage you to do against a financial advice simply educational video you can actually you know hold your money on the money market fund as you wait for the opportunity to arise on this stock market then boom you pounce on that opportunity so that you don't left behind and of course you can also leave something on the capital market I always tell people we can't say that shares are the best compared to everything no neither can we say oh the capital market is the what we do is to balance. Rates are good, shares are good or stocks are good. It's also good to invest on treasury bills or the treasury bonds. We can also have fixed income fund. We can also have you know special funds and variety of all these investments. So that in that part of our investment commonly known as the portfolio or diversification. It is good to have that. The Bible tells me thou shall not put your money or put your money in seven or even eight areas for you do not know when the disaster will strike. This is good Joseph. try the best I can to make sure that I bring this information to you in time so that at least you can get something out there. And by the way, on this video I have a request. Simple. If you've been watching my videos and in one way or the other you have ever benefited out of my videos and you've never subscribed, in other words, you don't follow me, you know, you always watch those videos. And if you check on your bottom right, there is a small button written subscribe.

[00:10:22]You've never hit that button. Just hit it. It will just disappear. Be left by a small bell there. Hit that bell. Why?

[00:10:29]Because once you do so, every time I upload a video, you always be notified that I have uploaded a video. And of course, if you have a question, please put it on the comment section. Either me or people who watch these videos will actually help to answer those questions.

[00:10:44]I said this is not a show that I run all alone. It is a we community where we help each other. how can we buy, how can we invest, we educate each other and all those kind of things. So I highly encourage you if you have a question leave it on the comment section. I'll try the best I can either I answer that question there in terms of a text or if I find it you know sort of like worth of which I'm saying like all the questions are great you know there's that question that can be asked and be like you know what this question can actually benefit everyone so out of that question I can even make a video so that everyone can benefit in this particular channel. This is good Joseph at all the time. I want to say thank you very much for always coming back to watch my videos and see you in the next one. And if you did my services, you always know, you already know what to do. Pick that number of mine, shoot me a text or a cop. Let's talk business.