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A common mistake in investing


With the advent of online banking and online trading, the stock market has opened its doors to virtually every person willing enough to grow their money.
And yet, despite this, not everyone has joined the bandwagon. The biggest factor being the potential risk involved in trading stocks. The stock market is among the most volatile financial institutions in business. And it’s this volatility that tends to be the biggest problem with the stock market.
Almost any reason, real or imagined can cause these extreme fluctuations that often affect the stock market’s credibility. Real factors such as the weather, political instability, political decisions, war, terrorist threats, boycotts and strikes, economic trends and international trade or even company scandals also become factors to the stock market problems.
Bad weather such as hurricanes affects certain industries such as oil production. This then drives the cost of petroleum products higher as production gets limited. This causes a cascading effect that drives stocks of oil companies higher.
Political instability in a country can affect investor confidence thus lesser investing is done. This causes the shares of local companies to slide downwards. Boycotts, strikers and terrorist threats have also proven to be the bane of the airline industry.
Shares of airliners have tumbled throughout the years with every terrorist attacks all over the world. But aside from uncontrollable factors such as natural disaster (or war), the common underlying link that allows these other reasons to affect the stock market so significantly is investor psychology.
Humans are prone to herd mentality. Often, people confirm with the actions and directions of other people. This is a common mistake in investing. An example of this is during the early 90s when dozens of dot com companies sold their stocks in the stock market. It created an artificial demand for stocks of companies that did not even provide real and concrete services.
These stocks soared in value as more and more enthusiastic investors bought them. This happened up until the time it was realized that these companies did not actually post any considerable profit to sustain the value of the shares. The stocks then tumbled and virtually lost value as investors frantically sold their shares.
This tendency to panic and depend on the direction of others is among the real causes of problems with the stock market.
There are two actions arising from this mentality:
a.) panic buying b.) panic selling
Of the two, panic selling causes the most harm since it causes a steep and quick drop in the value of shares. The best way to avoid causing these problems is to practice due diligence and to keep a level head while investing.

Gateway to Africa


South Africa has the resident marketing skills and distribution channels imperative for commercial ventures into Africa.South Africa is among the top 30 countries in the world for ease of doing business, according to a 2005 World Bank report. The finding suggests that South Africa is making progress in creating an environment conducive to investment, which the government has identified as key to achieving a 6% growth rate.
The survey ranked 155 countries according to the number of procedures, time and costs involved in: starting a business; dealing with licences; hiring and firing workers; registering property; getting credit; protection for investors; paying taxes; trading across borders; enforcing contracts; and closing a business.
South Africa ranked 28th, ahead Spain (ranked at 30), Austria (32), France (44), Russia (79), China (91) and Brazil (119). Overall, SA had the highest ease-of-business ranking on the African continent.South Africa's industrial production growth is well above the average for developing markets.
The country's manufacturing output is becoming increasingly technology-intensive, with high-tech manufacturing sectors - such as machinery, scientific equipment and motor vehicles - enjoying a growing share of total manufacturing output since 1994.
SA's technological research and quality standards are world-renowned. The country has developed a number of leading technologies, particularly in the fields of energy and fuels, steel production, deep-level mining, telecommunications and information technology.

Trading stocks in Africa


Experienced african stock traders and investors recognize that trading stocks with momentum is among the fastest & most effective ways to harvest BIG piles of cash in the stock market. Why? Because certain stocks with momentum bring the posibility of gaining as much as 100% on the same trading day. Some may only rise 10% on a few minutes. The problem is that if you don't know what stocks to look for and how to approach them while limiting your risk, you won't even get close to making some profits. You don't necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities while at the same time limiting your risk.

West African Economic and Monetary Union



The West African Economic and Monetary Union (or UEMOA from its name in French, Union économique et monétaire ouest-africaine) is an organization of states of West Africa established to promote economic integration among countries that share a common currency, the CFA franc.
UEMOA was created by a Treaty signed at Dakar, Senegal, on January 10, 1994 by the Heads of State and Government of Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal, and Togo. On May 2, 1997, Guinea-Bissau became its eighth member state.
UEMOA is a customs union and monetary union between some of the members of Economic Community of West African States (ECOWAS). Its objectives are
Greater economic competitiveness, through open and competitive markets, along with the rationalization and harmonization of the legal environment
The convergence of macroeconomic policies and indicators
The creation of a common market
The coordination of sectoral policies
The harmonization of fiscal policies
In terms of its achievements, UEMOA members have implemented macroeconomic convergence criteria and an effective surveillance mechanism; have adopted a customs union and common external tariff (early 2000); have harmonized indirect taxation regulations; and have initiated regional structural and sectoral policies. A September 2002 IMF survey cited the UEMOA as "the furthest along the path toward integration" of all the regional groupings in Africa.
ECOWAS and UEMOA have developed a common program of action on trade liberalization and macroeconomic policy convergence. ECOWAS and UEMOA have also agreed on common rules of origin to enhance trade, and ECOWAS has agreed to adopt UEMOA’s customs declaration forms and compensation mechanisms.




Members
Benin (1994)
Burkina Faso (1994)
Côte d’Ivoire (1994)
Guinea-Bissau (On May 2, 1997)
Mali (1994)
Niger (1994)
Senegal (1994)
Togo (1994)