THE STRUGGLING STOCK MARKET

It’s quite sad that the stock market is struggling right now, and this is because of the major conflicts in the Middle East, especially involving Iran. This conflict has disrupted oil supplies and pushed the prices of oil higher. Presently in Nigeria, petrol is selling for N1200-N1400 per liter. There is even news going viral that the petrol cost will be moved to N1620 per liter. Higher energy prices costs business to be slower and slows down economic growth, which scares investors and pushes stocks down. This is a big reason global market are weakening right now.

With the cost of oil up and broader energy costs increasing, inflation pressures are rising at the same time economic growth is slowing down. Consumers are spending less due to high prices, companies are facing higher costs and the growth is slow, hereby making investors sell their stocks.

Recently those who bought some shares in companies are seeing how the market is going up and down. Presently, some are running on loss.

However, as an investor, you should not sell your stocks in panic, you should look for dips to buy quality stocks, this is the time to diversify investments, and you should also watch economic indicators, (i.e. the interest rates, jobs and inflation).