HOW TO START SAVING AND INVESTMENT

HOW TO START SAVING AND INVESTMENT…

EVERYBODY WHO GOES TO CHURCH KNOWS THAT HE/SHE SHOULD GIBE 10% OF HID/HER INCOME TO RGE CHURCH. THEREFORE, GIVE TO THE STATE WHAT IS THE STATE’S, AND GIVE TO GOD WHAT IS GOD’S. BUT WHAT ABOUT YOU YOURSELF? YOU MUST LOOK INTO THE FUTURE WHEN YOU ARE NO LONGER ABLE OR WILLING TO WORK.

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THE NECESSITY OF MICRO AND SMALL BUSINESSES ACCOUNTING

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THE NECESSITY OF MICRO AND SMALL BUSINESSES ACCOUNTING- WHAT FOR?

MANY PEOPLE THINK THAT ACCOUNTING IS SOMETHING FOR “BIG BUSINESS”. THEY ARE AFRAID OF SOMETHING LIKE “DOUBLE ENTRY”  AND OTHER ACCOUNTING TERMS DIFFICULT TO UNDERSTAND. BUT DOES THAT FEAR REALLY HAVE A FOUNDATION? Continue reading “THE NECESSITY OF MICRO AND SMALL BUSINESSES ACCOUNTING”

RE-ORGANISATION OF RECKLING ENTERPRISE AND GHANA RESEARCH

 

  • OVERVIEW

AS YOU ALL PROBABLY KNOW, WE ARE SPECIALISED ON FINANCING, INVESTMENT, AND BUSINESS MANAGEMENT FOR MICRO AND SMALL ENTERPRISES. UNTIL NOW, WE OFFERED EVERYTHING THROUGH THE WEBSITE https://www.ghanaresearch.org, WHICH MEANS THAT TOO MANY SERVICES ARE OFFERED ON ONE WEBSITE. THIS MAKES THE SERVICES CONFUSING.

ADDITIONALLY, MANY OF THE SERVICES DID NOT FIT. PUBLISHING, EDUCATION, AND CONSULTANCY ARE NOT NECESSARILY ON THE SAME LEVEL. EDUCATION AND PUBLISHING ARE MORE THEORETICAL, WHILE CONSULTANCY DEALS MORE WITH PRACTICAL PROBLEMS. AS ONE OF MY SUPERVISORS IN THE LAW COURT ONCE SAID: “LADIES AND GENTLEMEN, NOW THAT YOU ARE HERE IN THE COURT, YOU CAN FORGET ABOUT 95% OF WHAT YOU HAVE LEARNT IN UNIVERSITY. IT HAS NOTHING TO DO WITH REALITY.”

THEREFORE, MY TEAM AND I HAVE DECIDED TO SPLIT THE CONTENTS OF THE WEBSITE. GHANA RESEARCH WILL IN FUTURE SOLELY COVER EDUCATION AND PUBLISHING. ON THE OTHER HAND, ANYTHING CONNECTED WITH CONSULTANCY AND PRACTICAL ASSISTANCE WILL BE OFFERED BY RECKLING ENTERPRISE DIRECTLY THROUGH THE WEBSITE https://www.recklingenterprise.com

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RE-ORGANISATION RECKLING ENTERPRISE AND GHANA RESEARCH

I REALISED THAT THE SERVICES WE OFFER ON THIS WEBSITE MIGHT BE A LITTLE BIT CONFUSING. PUBLISHING, EDUCATION, AND FINANCIAL CONSULTANCY DO NOT FIT ON ONE WEBSITE. THEREFORE, I DECIDED FOR THE RE-ORGANISATION  RECKLING ENTERPRISE AND GHANA RESEARCH. I WILL SPLIT THE SERVICES IN A WAY THAT I DESCRIBE NOW. Continue reading “RE-ORGANISATION RECKLING ENTERPRISE AND GHANA RESEARCH”

THE CORONA VIRUS AND THE ECONOMY IN GHANA

THE CORONA VIRUS AND THE ECONOMY IN GHANA
PEOPLE TALK MUCH ABOUT THE EFFECT THE CORONA VIRUS WILL HAVE ON THE ECONOMY IN GHANA. AS UNDERSTANDABLE THIS DISCUSSION MIGHT BE, IS IT REALLY NECESSARY/ AND MORE IMPORTANTLY, WILL THIS DISCUSSION CHANGE ANYTHING?

IT IS TRUE THAT THE PANDEMIC HAS A STRONG EFFECT ON ECONOMIES WORLDWIDE. COMMODITIES, INCLUDED COCOA, HAVE GONE DOWN. OIL PRICES PLUNGED, AND STILL PLUNGE, IN RECORD SPEED. EVEN, THE GOLD PRICE HAS GONE SOUTHWARDS IN RECENT DAYS, THIS IS AGAINST ALL EXPERIENCE WE HAVE FROM OTHER CRISES. THEREFORE, ALL THAT SHOWS THAT THE CURRENT HEALTH CRISIS HAS AN IMPACT ON ECONOMIC DEVELOPMENT WORLD WIDE. BUT, CAN WE CHANGE THAT?

YES, WE CAN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

BUT NOT BY DISCUSSING PERMANENTLY HOW THE CORONA VIRUS AFFECTS THE ECONOMY IN GHANA. WE CAN ONLY CHANGE THE IMPACT OF THE CRISIS ON THE ECONOMY BY FIGHTING THE CRISIS ITSELF. WE DEFEAT THE CRISIS SUCCESSFULLY, THE REBOUND OF THE ECONOMY WILL COME ALMOST AUTOMATICALLY.  NEW INVESTMENTS WILL FLOW INTO ANY COUNTRY WITH A STABLE DEMOCRACY.  AFTER A BIG PLAGUE HIT GREAT BRITAIN SOME CENTURIES AGO, THE END OF IT WAS THE START OF INDUSTRIALISATION  THERE. FURTHERMORE, HISTORY GIVES OTHER EXAMPLES OF A NEW BEGINNING AFTER A CRISIS, ESPECIALLY AFTER A HEALTH CRISIS.

HERE IS WHAT THE WORLD – AND GHANA – HAS TO DO:

  1. DEVELOP A VACCINE AGAINST THE VIRUS AS SOON AS POSSIBLE.
  2. KEEP TO THE STRICT – BUT SIMPLE – INSTRUCTIONS CONCERNING HYGIENE AND SAFETY.
  3. SUPPORT YOUR NEIGHBOUR BY ADVISING HIM/HER AND STAND BY HIS/HER SIDE.
  4. DO EVERYTHING TO SUPPORT THE GOVERNMENT WITH KEEPING THE HEALTH EFFECTS OF THE VIRUS DOWN.

IF WE KEEP TO ALL OF THAT, WE WILL ALSO KEEP THE ECONOMIC EFFECTS ON OUR LIVES DOWN. STATISTICS HAVE SHOWN THAT THE PEAK OF VIRUS WILL PROBABLY BE 30-40 DAYS AFTER THE FIRST APPEARANCE.

https://www.investopedia.com/

AS A CONSEQUENCE, TRY TO KEEP THE HEALTH EFFECTS OF THE CORONA VIRUS DOWN, AND YOU WILL ALSO KEEP THE EFFECTS OF THE VIRUS ON THE ECONOMY DOWN.

AS A RESULT, DON’T TALK SO MUCH, BUT ACT. 

THE CORONA VIRUS AND THE ECONOMY IN GHANA ARE VERY MUCH ATTACHED TO EACH OTHER. BUT, THE EFFECTS DEPEND ON HOW MUCH WE DO TO FIGHT THE HEALTH CRISIS.

KEEP IN MIND: CORONA PRODUCED A HEALTH CRISIS, NOT AN ECONOMICAL ONE!

 

 

 

GSE WEEK FROM 09-03-20 TO 13-03-20 AND CORONA VIRUS

 

GSE WEEK FROM 09-03-20 TO 13-03-20 AND CORONA VIRUS WAS SOMEWHAT BORING AGAIN.MOVEMENTS WERE WITHIN A RATHER NARROW RANGE. BUT THAT CAN CHANGE IN THE NEXT FEW WEEKS, AS THE FIRST CORONA VIRUS CASES APPEARED IN GHANA. WILL IT CHANGE?

EXPERIENCE FROM OTHER STOCK MARKETS HAVE SHOWN THAT MANY FINANCIAL MARKETS REACT ON THE VIRUS WITH MUCH VOLATILITY. REMEMBER, VOLATILITY IS DEFINED AS FOLLOWS.

Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security. Volatility is often measured as either the standard deviation or variance between returns from that same security or market index.

In the securities markets, volatility is (we)often associate volatility with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a “volatile” market. An asset’s volatility is a key factor when pricing options contracts.

https://www.investopedia.com/terms/v/volatility.asp

THAT SIMPLY MEANS THAT VOLATILITY TS A FAST AND UNPREDICTABLE CHANGE, MOSTLY IN THE NEGATIVE. OFTEN, THE ECONOMIC EFFECTS OF THE VIRUS ONLY MULTIPLY TRENDS WHICH ARE ALREADY PREVALENT IN THE GIVEN COUNTRY. THIS IS THE CASE, E.G., IN THE UNITED STATES, WHERE THE EARNINGS OF LISTED COMPANIES WERE ALREADY ON THE DOWNTURN.

OF COURSE, THE VIRUS WILL PROBABLY ALSO AFFECT THE GHANAIAN FINANCIAL MARKETS IN ONE WAY OR THE OTHER. THIS IS ESPECIALLY TRUE AS GOVERNMENT ANNOUNCED VARIOUS RESTRICTIONS. BY ALL MEANS, THESE RESTRICTIONS WILL AFFECT THE PROFITS OF GHANAIAN FIRMS.

ECONOMIC DEVELOPMENTS HAVE ALREADY AFFECTED OUR ECONOMY NEGATIVELY. OIL PRICES HAVE GONE DOWN BECAUSE OR QUARRELS WITHIN THE OPEC+ RUSSIA AND OTYTHERS. EVEN THE GOLD PRICE WENT DOWN SOMEWHAT. IN A WAY, THAT WAS SURPRISING, AS USUALLY GOLD IS A “SAFE HAVEN”. BUT, IN THIS CASE FIRMS AND GOVERNMENTS WENT OUT OF GOLD AND WENT INTO CASH. THIS IS BECAUSE MANY OF THEM WANT TO COMPENSATE POSSIBLE LOSSES DUE TO THE VIRUS.

NEVERTHELESS, I DON’T SEE ANY REASON FOR A FINANCIAL PANIC, AS I DON’T SEE A REASON FOR A HEALTH PANIC. FIRST OF ALL, OUR CONSUMPTION SHOULD GO ON AS USUAL, ALTHOUGH WITH SOME RESTRICTIONS. WE MUST LIVE WITH ECONOMIC RESTRICTIONS FOR SOME TIME, AS WE MUST LIVE WITH HEALTH RESTRICTIONS.

ON THE OTHER HAND, ANY HEALTH CRISIS IN A COUNTRY GIVES THE OPPORTUNITY FOR A NEW BEGINNING. WE WILL HAVE NEW DEVELPMENTS WHEN THE CORONA CRISIS IS OVER. THESE NEW DEVELOPMENTS WILL GIVE NEW INVESTMENT OPPORTUNITIES. AS GHANA IS ONE OF THE COUNTRIES IN AFRICA INVESTORS PREFER, NEW MONIES WILL FLOW INTO THE COUNTRY. AFTER THE DARKNESS OF THE CORONA VIRUS CRISIS, SUNSHINE WILL COME AGAIN OVER THE GHANAIAN ECONOMY, AND THEREFORE, OVER THE GHANAIAN PEOPLE.

SO, GSE WEEK FROM 09-03-20 TO 13-03-20 AND CORONA VIRUS MIGHT HAVE A NEGATIVE EFFECT ON THE ECONOMY AND THE FINANCIAL MARKETS. BUT THAT WILL ONLY BE IN THE SHORT TERM. IN THE MEDIUM AND LONG TERM, A NEW BEGINNING WILL HAVE A POSITIVE EFFECT ON THE GHANAIAN ECONOMY AND THE FINANCIAL MARKETS HERE.

STAY TUNED FOR NEW DEVELOPMENTS!

 

 

GHANA STOCK EXCHANGE WEEK FROM 24-02-20 TO 28-02-20

THERE WAS STILL NOY MUCH GOING ON ON THE GHANA STOCK EXCHANGE DURING THE LAST WEEK.  GHANA STOCK EXCHANGE WEEK FROM 24-02-20 TO 28-02-20 WENT DOWN AND UP A LITTLE, BUT EVERYTHING WITHIN A TIGHT FRAME. REALLY, ONE CAN SAY IT WAS AGAIN BORING. THEREFORE, A PERSONAL ADVICE FOR YOUR OWN BUSINESS. WHY DON’T YOU TRY TO IMPROVE YOUR WEBSITE THROUGH A WEBSITE FROM GHANA RESEARCH? PERHAPS, YOUR BUSINESS WILL THEN ONE DAY ALSO LIST ON THE GHANA STOCK EXCHANGE. Continue reading “GHANA STOCK EXCHANGE WEEK FROM 24-02-20 TO 28-02-20”

CORONA VIRUS ALONE – OR IS THERE MORE?

THE THREE MAIN US-AMERICAN STOCK INDICES HAVE THE MOST TERRIBLE WEEK SINCE THE GREAT RECESSION 1929 FF. MANY PEOPLE THINK IT IS THE CORONA VIRUS THAT PUTS FEARS INTO INVESTORS’ MINDS. BUT IS IT ONLY THE CORONA VIRUS ALONE – OR IS THERE MORE?

NO DOUBT THE CORONA VIRUS PLAYS A BIG ROLE IN THE CRASH THAT HIT US-AMERICAN INDICES IN THIS WEEK. IF YOU LOOK AT INVESTING WEBSITES LIKE INVESTOPEDIA (https://www.investopedia.com/), YOU WILL SEE THAT MANY US-AMERICAN CONPANIES COMPLAIN. OBVIOUSLY, THE CORONA VIRUS INTERRUPTED THE SUPPLY CHAINS FOR PRODUCING THEIR MERCHANDISE AND SERVICES. MANY AMERICAN FIRMS GET THEIR SUPPLIES FROM CHINA AND OTHER EAST-ASIAN COUNTRIES. THEREFORE, IT IS NO MIRACLE THAT THEIR EARNINGS AND PROFIT FORECASTS FOR 2020 GO SOUTHWARD. ONE RESEARCH DEPARTMENT OF A GLOBAL BANK EVEN BELIEVES THAT THERE WON’T BE ANY POSITIVE EARNINGS RESULTS AT ALL IN 2020.

BUT IS IT ONLY THE CORONA VIRUS THAT CONTRIBUTES TO THIS OBVIOUS STOCK MARKET CRASH IN THE UNITED STATES? (BESIDES, OTHER STOCK MARKETS WORLDWIDE ALSO WENT DOWN SIGNIFICANTLY. HERE, OTHER FACTORS BESIDE THE VIRUS CONTRIBUTE TO THE DOWNFALLS. BUT, IN MY OPINION, THEY ARE DIFFERENT THAT IN THE U.S.A. IN THIS ARTICLE, I CONCENTRATE ON THE SITUATION IN THE U.S.A.)

IN MY OPINION, THERE IS AT LEAST ONE MORE OTHER REASON BESIDE THE VIRUS CONTRIBUTING TO THE RECENT DOWNFALL. THE U.S.-AMERICAN STOCKS ARE OFTEN OVERPRICED. SIMPLY, WE SEE THAT, E.G., IN THE FACT THAT SINCE YEARS, WARREN BUFFET’S BERKSHIRE HATHAWAY DID NOT FIND ANY COMPANY TO BUY.

WARREN BUFFET PREFERS TO BUY COMPANIES WITH A HIGHER INTRINSIC VALUE THAN THEIR PRICE. WE DEFINE INTRINSIC VALUE AS:

Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model, rather than using the currently trading market price of that asset.

In financial analysis this term is used in conjunction with the work of identifying, as nearly as possible, the underlying value of a company and its cash flow. In options pricing it refers to the difference between the strike price of the option and the current price of the underlying asset.

https://www.investopedia.com/terms/i/

FOR BUFFETT, THE INTRINSIC VALUE OF A COMPANY MUST BE HIGHER THAN THE PRICE HE PAYS FOR IT.

AND INVESTORS OVERPRICED THE U.S.-AMERICAN STOCK MARKETS EXTENSIVELY. THESE ARE ESPECIALLY COMPANIES WITH RELATIONS TO THE DIGITAL AGE, THE SO-CALLED GROWTH COMPANIES. WE MUST SEE THIS IN OPPOSITE TO VALUE COMPANIES – COMPANIES BUFFETT WOULD BUY.

MANY COMPANIES ON THE US STOCK MARKETS DON’T EVEN MAKE A PROFIT. THEY GROW AND GROW AND GROW, BUT THEIR DEBTS ALSO GROW AND GROW AND GROW. IN MY EYES, THIS IS NOT HEALTHY. THIS IS ESPECIALLY THE CASE IF PROFIT DEPENDS MOSTLY ON ADVERTISEMENT SALES.

THEREFORE, I BELIEVE THAT THE AMERICAN STOCK MARKET DOES NOT ONLY SUFFER FROM THE CORONA VIRUS. SURELY, AN ADDITIONAL POINT IS AN ESCESSIVE OVERPRICING OF AMERICAN COMPANIES, NOT BACKED BY ENOUGH ASSETS.

CORONA VIRUS ALONE – OR IS THERE MORE? OBVIOUSLY THERE IS MORE THAN THE EYE CAN SEE.

 

 

IS GHANA TORN BETWEEN GOLD AND OIL?

THE “GOLDSTREET” BUSINESS NEWSPAPER TODAY REPORTS THAT GHANA BENEFITS FROM A SURGE IN THE PRICE OF GOLD. TO READ THE WHOLE ARTICLE, VISIT: https://goldstreetbusiness.com/business/ghana-set-to-benefit-from-gold-price-surge/ BUT ON THE OTHER HAND, OIK PRICES ARE GOING SOUTHWARDS. IS GHANA TORN BETWEEN GOLD AND OIL? Continue reading “IS GHANA TORN BETWEEN GOLD AND OIL?”