Today’s Trading Playbook
Amr Hussein Elalfy CFA | Head of Research
KEY THEMES
This year, retail investors have been the main engine behind the surge in daily trading values. A quick look at EGX 70 performance (+55% ytd despite yesterday’s 7% decline) reveals how far this has gone. It was a matter of when, not if, that we would see profits taken off the table. Retail investors ran for the exit, trying to cash in their chips as fast as they can. They only needed a reason to do so; the resurgence of COVID cases and air travel shutdown in some countries was enough of a reason. No one knows what will happen next year, exactly like no one knew what was going to happen earlier this year. But investors need to remember that stocks are part ownerships of businesses that may suffer from or benefit off extreme scenarios, like COVID. Not all stocks are created equal, so it is up to investors to stick to the stocks where they see value supported with sustainable business models. Indeed, sharp market declines create opportunities for those investors who patiently wait for bargains.