« Paul Romer on economic growth | Main | Farewell to Alms, pp.112-192 »
Kenya fact of the day
The two women carried on about liquidity and profit margins, and recalled with pride attending the first shareholder meeting of KenGen this year, an event so huge that it had to be held in the city's largest soccer stadium. About 200,000 people from all corners of the country came like so many newly minted executives.
"I felt so good," Kariuki recalled. "It was just normal, common people. People dressed well. What impressed me was the number of old women -- they were coming in their traditional clothes. They were telling me, 'Yes, we bought!' "
Here is the full story. I am not in any particular sense bearish about Kenya's future, relative to its starting point. And I am pleased to see that the country is growing so rapidly. But I do believe the time has come to sell, or if you can (ha!), sell short.
Posted by Tyler Cowen on August 27, 2007 at 03:04 PM in Current Affairs | Permalink
Comments
""I have something telling me to buy," she said, explaining that she had come for KCB Bank shares in the morning and decided to return for more in the afternoon."
One can be sure the rational choice model will work very well here.
Posted by: samson at Aug 27, 2007 3:31:16 PM
This sounds a lot like what's happening in China (the mainland) right now. Every cab driver I met this summer who spoke English mentioned what happened on the Shanghai market that day (I assume it wasn't for my benefit) ...
Posted by: Matt at Aug 27, 2007 3:51:19 PM
matt...I wonder if they think that every american only wants to hear about the stock market, so they check it out to seem informed/somehow get tips. ??
1: read stock page
2: ????
3: profit!!!
Posted by: shawn at Aug 27, 2007 4:24:17 PM
What's amazing is that I was at a Chinese business school in the fall of 2005 and found zero interest for a stock club. Newspapers with stock information were scarce. Now there are students investing their entire savings in the market. Madness.
Posted by: 8 at Aug 27, 2007 5:20:52 PM
I'm really worried that this is a bubble that could wreck my portfolio. I have 20% of it in foreign
equities, of which 15% is in emerging markets, of which 5% is in Kenya. That's a whopping 0.15% propped
up by bubbling buying idiots!
Posted by: Person at Aug 27, 2007 5:22:01 PM
This is sad, because they know not on what thin ice they tread. These are people who can (I am surmising) ill afford to bear the effects of a popping bubble.
Posted by: fustercluck at Aug 27, 2007 9:23:22 PM
A bursting bubble of stocks like KCB, KENGEN, Kenya Airways..last years darling, and the upcomming mother of all anticipated juicy stock's SAFARICOM, wich is due to IPO shortly, at least leave there shareholders holding some percentage of their orginal investment, since these companies are Kenyan Blue chips and have real assets and real cash flows....even if it's just in Shillings. The above mentioned 200,000 plus are the savy ones....BECAUSE the current hottest investment craze in Nairobi,is the favoured...DRUM ROLL!!!!! PONZI SCHEME...Aghh!! Kenya has been gripped by ponzi fever, of the Romanian vintage, complete with special "investment banks"...poor imitations of their wall street brethren (You have to start somewhere), offering 400% returns on SHHHH!!!! no questions asked investments, on three month terms. A recent op-ed piece by no less than the the governor of the Central Bank and the Minister of Finance, shouted for rationality, whereby they were promptly ordered to appear infront of the parliamentary select committee on finance to "explain" why they were undermining legitamate busnesses trying to hustle a buck. A sordid mess in deed. A family member with a master degree in finance, and a management position in a fortune 10 (Kenya version) institution recently pitched me to join the fun.....and yes they are is intelligent as evryone else..but they were fuilly convinced that some other sucker would be left holding the bag when the music stopped....Financial Education has a long way to go, but for you westerners no need not worry, these are a very sturdy group of investors, with a long history of enduring shareholder abuse and a stoich take on the long run, you'll easily get out of the market, back in again, and out, long before small kenyan retail investors quit their KCB shares. Hey if your an Sub-prime mortgage banker it might be time to move to greener pastures....British Airways is running a NY to NBI return special for $666.
Posted by: Nyangau at Aug 28, 2007 8:44:36 PM
China Tours and Yangtze Cruises A professional China travel agency offering private & group package tours, tailor-made vacations for families, couples and individual travelers, Yangtze cruises, hotel & ticket booking services.
China Travel and Tours One-stop China travel service delivering China package tours, discount Yangtze River cruises and best rate hotels.
Tibet Train Travel A reliable tour operator specializing in Tibet tour packages, adventures, hotel and train ticket booking.
China Maps A free web-based source for China travel and tour map users
Voyage Chine, Tour de Chine, Circuit Chine - Un agence spécialiste voyage en Chine
Great Wall of China A website for the Great Wall of China.
Posted by: China tour at Nov 27, 2007 2:21:45 AM
