Last week, global stock markets experienced significant volatility, leaving many investors on edge. The turbulence was particularly evident in Japanese equities, which lost $1.1 trillion in value within just three days—a record-breaking drop as August began.
In this interview, Andrew Barden discusses the chaotic global stock markets with Ronny Chokaa, a senior research analyst at AIB-AXYS Africa. They delve into the impacts of decisions by central banks like the Fed and the Bank of Japan on markets and economies worldwide. The conversation highlights how these global trends could affect Kenya’s financial landscape and investment strategies.
For investors, Chokaa emphasizes the importance of selective diversification. He advised reducing exposure to underperforming sectors, such as media and manufacturing, which have been hit hard by high inflation and low consumer demand.
Instead, he suggests increasing investments in sectors like banking and telecommunications, which are showing strong profitability and are poised to benefit from a potential turnaround in the business cycle.
