For those of you adamant on investing in the stock market, some words of advise from one of the most prestigious economics and financial economics professors at the AUC. (I don’t have explicit permission to cite her name, so out of respect opting to maintain her anonymity).
While she agrees that at the end this is a symbolic gesture that serves more to foster the feeling of patriotism and solidarity than to actually have an economic impact, yet she had some guidelines to share:
- If you are going to invest do it through a credible channel.
- Don’t attempt to pick the stocks yourself.
- Invest through a fund, select one managed by a reputable institution.
- Contemplate purchasing bonds سندات or treasury bills أذون خزانة these are primary market borrowing tools that corporates and governments use to raise funds. These funds go directly to the company in question or to the Egyptian government.
- If you are going to be selecting the stocks yourself, do so based on fundamental rather than technical analysis. Enter as a long term investor and hence be more interested in the profitability of the company than the volatility of the stock.
Best of luck to you all.