This Is What 2015 Will Be Like For The Stock Market: On December 15th our markets were down some 800 points and in the middle of the day i took time out and wrote that DO NOT PANIC and sell because i wanted to have the small investors not make a wrong decision. I had also written that it was mostly due to OIL prices related and of MEEZAN Bank taking 5 companies off the Shariah Compliant List. I have had my first argument about shariah board when i had developed The Worlds First Islamic Equity Benchmark Index in 1996 called KMS-SAMI (Socially aware Muslim Index) on Wall Street and which is today run by Down Jones and its called Dow Jones Islamic Index and is in 38 countries. The shariah board of my investment bank wanted me to include companies that also had DEBT and were paying interest and also the ones that were sitting on piles of cash and earning interest. That was my first SOUR taste of what i termed ISLAMIC BANKING HYPOCRISY of the Shariah Board Members. I aired my opinions in the Bahrain Islamic Banking Conference in front of the world Islamic Scholars and i was labeled a BLACK SHEEP of Islamic Banking because i was questioning the people who were selling their SOULS TO THE DEVIL in the name of ALLAH. There is nothing Islamic other than a MUSHARIKA. And even within MUSHARIKA there are many rules that have to be adhered to. So the question becomes then, why were these 5 companies on the SHARIAH COMPLIANT list to begin with when their balance sheets were co-mingled with income from interest or servicing their debt. In addition to many UNETHICAL PRACTICES. So my basis of not panicking was the fact that it was a wrong move to begin with. And i am very sure i will hear from my friends in Islamic Banking Circles who are either Managing ISLAMIC FUNDS for TYRANT GCC governments or some sheikh who Drinks himself to sleep every night in Bahrain or Saudi or any other GCC country but to save his face owns a major percentage of an Islamic Fund or an Islamic Bank. And these are first hand experiences of my interactions over 20 years of GCC Royalty.Until we learn to not MESS WITH THE RULES OF DIVINE FINANCING, we will have many a financial problems. All of my investments are NOT in shariah compliant stocks but at least I DO NOT FOOL MYSELF by leasing a car from A so called Islamic Bank and think that i am NOT PAYING INTEREST but rather a fee for them owning the vehicle and leasing it to me under IJARA. May Allah save us and specially ME from hypocrisy. Anyway, today was a huge INDEX RALLY. Most of you must have noticed that YOUR STOCKS did not rally in conjunction with the markets unless you owned Oil Stocks. Today was an EXACT REVERSAL partly from the losses of December 16th. So may be today you noticed that our index is very oil heavy and as i have been saying that THIS INDEX of ours is NOT a true representation of the market. As we go higher and higher next year Insha Allah in Index value, With the world energy prices still not settled by 2015 June, My assessment, we will see FRONTIER MARKETS, heavily sensitive to oil prices, will continue to be EXTREMELY VOLATILE. 300 to 500 point SWING will become a normality by March 2015, even earlier. So either learn to develop strong nerves, pick better stocks or get out of the markets now. 2015 is NOT going to be a SMOOTH RIDE. Mark My Words and take it to the bank. What i have been saying about buying value and holding onto it will ABSOLUTELY be proven in 2015. Patience and wisdom will make money in 2015. SMART MONEY will buy and hold value and DUMB MONEY will chase the market direction above 32,000 like a Tom & Jerry cartoon episode.
Posted on: Mon, 22 Dec 2014 14:09:58 +0000
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