Will 2025 be the JSE’s best year ever?

One investment banker is predicting that 2025 will be the best year for Jamaica’s stock market, possibly in history!

I’m Kalilah Reynolds, founder and CEO of Money Media, money news made simple.

So Dan Theoc is Vice President of Investment Banking at Mayberry Investments.

Dan and Mayberry are currently pushing Mayberry’s new bond, with interest rates as high as 10-point-5 percent.  And that’s a fixed rate for up to 3 years.

But here’s the thing, all indications are that interest rates in Jamaica are about to trend down.

I did another video with three top bankers calling for the BOJ to cut rates, and Dan himself predicting that they will do so in the next three to six months.

So what does this all have to do with the stock market?  

So why does Dan think 2025 will be the best year ever for Jamaican stocks?

Well, stocks tend to do poorly when interest rates are high.  As we can see from the past two years.  It’s been tough out here for stock market investors in Jamaica.

Stock prices have been down because all the smart money has been shifting to bonds and real estate.  If you can get an easy 10-percent interest fixed on a bond, why risk your money in stocks right?

But when those bond rates start coming down, the smart money needs another way to beat inflation, and they tend to look towards stocks.

As I record this almost halfway through 2024, there’s only been one IPO, but I’ve heard of a couple others coming up soon. 

 Last year, there was only one IPO on the Jamaican market all year!

But Dan said Mayberry has some coming up.  And he’s predicting at least TEN next year, including two BIG ones!

So what does this mean for you and your money?

One – if you’re benefiting from high interest rates through bonds, lock those in now before rates start falling.  Opt for a fixed interest rate on anything that PAYS YOU interest.

Two – if you are PAYING or about to pay interest on a loan, opt for a variable rate, so that when those rates start coming down, you will benefit from a reduction.

Three – start placing your positions in the stock market now.  If Dan is right and next year’s gonna be booming, then you want to take advantage of low stock prices now.  Because if you wait until next year, the prices will be high and you would’ve missed the opportunity.

Now of course, none of this is to be considered investment advice.  This information is for educational purposes only.  Please consult your licensed financial advisor before making any investment decisions.

And that’s the bottom line.