1/ Possible Causes of ZSE Downtrend (Thread)
In Technical analysis, we believe that “Volume goes with the trend
The current trend signals that we have a declining demand volume causing illiquidity.
Sellers who want to exit are more than buyers who want to enter the market ..
In Technical analysis, we believe that “Volume goes with the trend
The current trend signals that we have a declining demand volume causing illiquidity.
Sellers who want to exit are more than buyers who want to enter the market ..
2/ Hyperinflation
Few stocks performed above the inflation rate at some point, but those who didn’t sell lost on inflation and then on market decline. Rational retail investor will consider converting the capital to USD than to maintain the portfolio, thereby exiting the market
Few stocks performed above the inflation rate at some point, but those who didn’t sell lost on inflation and then on market decline. Rational retail investor will consider converting the capital to USD than to maintain the portfolio, thereby exiting the market
3/ Interest Rates
Interest rates were raised to around 200%. Is there any investment making the same at the moment?
Institutions are just making rational choice of exit the market to lend that money at profitable rates
#ZSE is dominated by institutions than retail investors
Interest rates were raised to around 200%. Is there any investment making the same at the moment?
Institutions are just making rational choice of exit the market to lend that money at profitable rates
#ZSE is dominated by institutions than retail investors
4/ Forex Regulations
If a foreigner liquidates investments or receives dividends, are they able to withdraw usd?
It’s important to check purchases and sales by foreigners on #ZSE. It confirms they are exiting the market.
It always reduces liquidity and exerts pressure on the mkt
If a foreigner liquidates investments or receives dividends, are they able to withdraw usd?
It’s important to check purchases and sales by foreigners on #ZSE. It confirms they are exiting the market.
It always reduces liquidity and exerts pressure on the mkt
5/ Alternative markets
If the market is no longer efficient, rational investors , esp retail, will always migrate to a better option. We have gold coins, access to foreign crypto, stock and derivative markets.
How easy is it to invest on JSE or NSE, KuCoin?
If the market is no longer efficient, rational investors , esp retail, will always migrate to a better option. We have gold coins, access to foreign crypto, stock and derivative markets.
How easy is it to invest on JSE or NSE, KuCoin?
6/Money Supply
Generally, we have a contractionary monetary policy. RTGS is now in short supply as exhibited by falling parallel rates. Such MacroEco moves stifle aggregate demand
Basic Economics tells us Investment is part of AD
AE = C + I + G + (X-M)
Generally, we have a contractionary monetary policy. RTGS is now in short supply as exhibited by falling parallel rates. Such MacroEco moves stifle aggregate demand
Basic Economics tells us Investment is part of AD
AE = C + I + G + (X-M)
7/ Restricted Market
If you have a CDS you know it’s not easy for new retail investors to register.
Simple things like Proof of Res, Bank Accounts and Market information can prevent ZSE from attracting new investors. Current investors were may have reached limit
If you have a CDS you know it’s not easy for new retail investors to register.
Simple things like Proof of Res, Bank Accounts and Market information can prevent ZSE from attracting new investors. Current investors were may have reached limit
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