Many people i know are buying shares in the Nigerian stock market, because they believe the market is rebounding. This is a serious error if you have a short view of things, i.e. want to sell withing months. The market might inch up a little bit, but it would remain low for most of next year. Don`t forget that 3 trillion naira has gone up in smoke already.

The reason is simple. The world is in deep recession and our beloved country will surely suffer some backlash. Crude oil price will remain low leading to reduced cash flow to Nigeria, reduced cash means the economy would slow and affect local companies. People might buy shares and cause increase the price for a short period, it cannot be sustained becuase the economic climate is very stormy right now.

Investors beware.
Trade with caution

Any Opposers out there?