Investors urged to reposition stocks during low prices season

A financial analyst has urged investors to take advantage of low price of stocks in the nation’s capital market to reposition their investment.

The Chief Research Officer, Investdata Consulting Limited, Mr Ambrose Omordion who made this statement said that the current undervalued state of the market offers opportunities for investors to reposition for the short to long term.

He said there is need for local investors to target fundamentally sound and dividend paying stocks for possible capital appreciation.

Highlighting  some steps to survive bear market trend, he said before enging in stock trading, an investor must have confidence that equity market will bring returns on his investment if he invest correctly.

Expressing the need for investors not to under estimate the importance of keeping a strong mind during downturn such as this, he said ” I used to be discouraged , thinking that there would never be an upward trend again, but now iam highly encouraged because I know that with 100 per cent certainty that we would end this negative trend with growth trend someday”

He, however, said that individual investor intending to play in the capital market expected to have listed of stocks he want to invest into, adding that attraction to a particular stock could be as result of the price, earning performance, volume traded or intrinsic value.

He said with money at hand, once the market starts new up trend, investor should be ready to jump in on the strongest stocks to make more gains.

Speaking further he said, during down market, keep a few stocks in your portfolio for effective monitoring and revaluation, if you are used to buying 20 to 30 stocks, there is nothing wrong with buying two to five stocks.” 

This according to him allows you to scale into some stocks you might like for a longer term as it helps you to deal with higher volatility and protect your capital.

He said that wealth creation through the stock market is more of an art rather than a science, adding that anybody can create wealth by intelligently investing in equities by seeking to buy value at some discount that represents a high margin of safety that lowers investment risk, despite the high risk associated with stock market investing.

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