Henry Arhinful

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[Blake Burge @blakeaburge]

A rule that will improve your life: Never assume bad intent, but don’t ignore repeated patterns. Everyone gets grace. Nobody gets unlimited passes.

[Henry Arhinful @Kakra98]

@onlydubsX Cryptocurrencies will do to traditional banks in the years to come what YouTube has done to TV production studios, as Kevin Hart explains here.

[Justin Skycak @justinskycak]

The cost of avoiding structure is that every day has to be renegotiated from scratch.

[Robert Greene @RobertGreene]

You must never assume that what people say or do in a particular moment is a statement of their permanent desires.

[Kerr Dakwahene @DrKerrDakwahene]

I see the frenzy around the Ghana Stock Exchange and my first instinct is to stay out of it. But I cannot simply stand by and watch people make grave financial mistakes. These are the kind of mistakes that will cause many people to lose their heads when the tides turn.

As Warren Buffett famously said, “Only when the tide goes out do you discover who’s been swimming naked.” The tides are indeed in full swing. Markets are roaring to life, orders are hitting brokers and all time highs are being set. Soon enough we will see those who are swimming naked because it cannot go on forever.

Some very well-read and knowledgeable people on this platform like @readJerome @DesmondBredu @GameliMartey have served as bulwarks of financial intelligence on Ghana’s side of X and I do not wish to “take their place”. All I ask is for you to hear me on why you might be making a mistake chasing the greens on the Ghana Stock Exchange.

There are very few stocks on the GSE (38 currently). Just by obeying the Pareto principle, there are even lesser solid companies on the exchange. Most companies aren’t making their disclosures properly and have weak financials. The exchange is however portrayed to be full of “cheap” companies that are doing extremely well.

This has caused FOMO among retail investors, driving prices upwards as they rush in to get a spot. The frenzy is not among retailers alone but also among UHNW buyers and institutional buyers. Everyone wants to get a piece of the action in this bull market.

The GSE has recorded an impressive 50 percent plus return this year and has crossed GH¢ 250 billion in market cap. Stocks like MTN, GCB, Benso Oil Palm have done good this year climbing in double digits percentages. These are the smoke screen headlines but underneath all this buzz is a dire problem that unless solved poses a big threat that could derail the morale of Ghanaians to participate in investments of any sort.

In 2021, I had the chance to participate in a meeting that would shape the future of our markets; the launch of IC’s electronic brokerage. Yes, it was in 2021, that our lead broker was going electronic to better serve clients. In this meeting I asked the MD of the GSE what work was being done to bring in market makers who could increase liquidity on the exchange, reduce volatility and thus spur further investment on our exchange. In response I was told that work was being done behind the scenes to increase liquidity and deepen the market. As we speak brokers still match buyers to sellers without the active work of any market maker.

Anyone who has been in finance for a while knows how critical market makers are to the structure of markets. Without them, sellers would have to wait for buyers to be able to offload shares increasing volatility and rendering many unable to participate in the boom.

The GSE lacks this essential mechanism and thus no surprise for me to see that shares are being offered without matching bid size. In most instances orders to buy or sell shares expire. I have suffered this on several occasions. The reason stocks make huge upward moves and equally sharp declines is the volatility created by illiquidity.

As you’re investing on the exchange just know you’re taking a big illiquid risk, what happens when everyone’s rushing out the door in an economic or a market crisis. Who will be left holding the bag. The big moves and order expirations hitting after several weeks should tell you there’s a big problem and not a major opportunity. When it’s time to exit how will you do that.

Many people are falling for the self-styled gurus who post things like “if you had invested GH¢10,000 in XYZ here’s how much you’d have today”. Good luck with getting that much in shares with some notable exceptions easily. This is greed being sold as financial intelligenc

I leave you with some humor about understanding markets. “When your barber starts giving stock tips, it’s time to sell.”

[Elon Musk @elonmusk]

This hits home

[Robert Greene @RobertGreene]

Just imagine for a day that you do not know anything, that what you believe could be completely false.

Let go of your preconceptions and even your most cherished beliefs.

Experiment.

Force yourself to hold the opposite opinion or see the world through your enemy’s eyes.

Listen to the people around you with more attentiveness.

See everything as a source for education—even the most banal encounters.

Imagine that the world is still full of mystery.

[Henry Arhinful @Kakra98]

@kuk0nki I understand your pain. Remember, easy success often is just unseen consistency. James 2:26 says, “As the body without the spirit is dead, so faith without deeds is dead.” I'll leave you with this insight from Bismark Tudor.
https://t.co/bGK0ghzGZ5

[SAMUEL AYARKWA @ayaxdegreat]

@barkervogues What is broken is our moral compass as a people. We are corrupt by nature and don't care about the plight of others. That's what is wrong with us. Sadly, our religious bodies are more interested in money than anything else today.

[Henry Arhinful @Kakra98]

I've been saying for a long time that the country’s systems are broken. This is one example.

[Osagyefo Oliver Barker-Vormawor @barkervogues]

Last year, I was helping a friend find a property to rent.

The property was listed at 10,000 cedis for rent. It was out of his budget but he liked it. So we were trying to get the landlord to accept 9000 cedis for it.

Sadly, someone was ahead in the queue and got it. It’s a year later. The property is back in the market.

It is listed at 1500 dollars. (Nearly 17,000 cedis).

At the time it was 10,000 cedis, the dollar was 16. Meaning the dollar equivalent would have been around 625 dollars. Today the dollar is around 11, meaning the value of the rent should have been around 6-7 thousand.

Something is broken about Ghana. I can’t put my finger on it. But it’s not working la!

[Henry Arhinful @Kakra98]

@drgurner Once you understand life's seasonal nature, the hard times aren't so difficult. It will pass; you just have to maintain your energy and drive until things get better. And they will get better, they always do.

[Henry Arhinful @Kakra98]

@WatcherGuru God candles uploading⏳

[Henry Arhinful @Kakra98]

Laudable

[SIKAOFFICIAL🦍 @SIKAOFFICIAL1]

“The African continent in general is underdeveloped because it lacks the concept of maintenance. There is no single African language that has a direct word for maintenance”

-Franck Zanu Adjisegbe.

[Elon Musk @elonmusk]

🎯

[Henry Arhinful @Kakra98]

@fictitious_cap @adam3us 3. Their end game, I see, is to establish Bitcoin as a foundation of trust in a multipolar world, offering financial stability in an unstable economy. Senator Lummis' bill aims to secure a leading position in the evolving global financial landscape before other nations.

[Henry Arhinful @Kakra98]

@fictitious_cap @adam3us 2. Bitcoin attracts buyers because of its rising adoption and value. It serves as a store of value and a payment method, providing protection against fiat currency failure and geopolitical instability. Compared to gold, Bitcoin is more portable, divisible, and liquid.

[Henry Arhinful @Kakra98]

@fictitious_cap @adam3us 1. If Bitcoin reaches seven figures, it will likely serve as a settlement layer rather than a daily currency, with central banks, sovereign wealth funds, and large institutions as the main buyers seeking a non-inflationary asset to protect their wealth.

[Hubert Tieku Esq @KwesiHubert]

This Ghanaian Tik Toker ein content dey bee waa👏🔥🔥

[HelicopterMan @LaryeaDerek]

We Global Now 🔥

#StopGalamseyNow
#FreeTheCitizensNow

[Kwame Asante Ofori @mR_aSAntE]

The protest has made it on US national news. Continue to press their necks till something is done immediately!! #StopGalamseyNow #FreetheCitizens