For this discerning reader, the decline experienced by the BRVM goes beyond the law of supply and demand. Behind daily quotations and buying and selling pressures, there would be an invisible hand.
For the small investors of the BRVM
There is one and only one explanation for the continuous decline in prices at the BRVM: the heavyweights of the stock market who sold us the shares two to three times more expensive when the stock market was at the top have their cases still full of billions and are, quietly, buying us the same actions at low prices to replenish their stocks.
By lowering prices, they want to kill two birds with one stone: to push the apprentices investors to sell under the effect of panic and, moreover, to buy cheaper. Any other explanation is only distraction and misinformation.
Do not give in to panic. All the stock exchanges in the world are handled in the same way and it is always the small investors who enrich the professional investors. There is an invisible hand that sets the prices for each stock at each trading session. If you have money, it’s time to buy because that’s what professionals are doing now. Real investors know that the stock market is 95% psychology and the 5% is used to know which stock to buy or sell.
If the decline has been going on for almost three years, it’s simply because very few people sell their shares at prices as low as current prices. In addition, these heavyweights are insatiable.
For the moment, their plan does not seem to work as expected and they are not able to replenish their stocks of stocks before launching the next sales campaign by raising prices. If you sell now, you will probably miss the train of the next rise that will arrive sooner or later.
The first quality of a good investor is patience.
