With insecurity, Business people do not invest, but buy and sell
Usually in an environment where there is no security, that also means any businessman who want to do business there is taking a high risk.
Nobody loves to go for a long drive on a bumpy road. It is true for investments as well. Conditions of severe political and economic insecurity, corruption, often underpinned by weak governance and high levels of poverty make the risk management of an investment almost impossible. In an unpredictable volatile situation, no wise investor would prefer a term investment, because although the chances of long term reward might be very high, there could be indefinite chances of downside too. However, there are investors who love to take benefit of these uncertain markets. They buy on dips and sell when it goes up and exit any time of their choice with profit-- it could be some stocks or some stakes in businesses. To them, short-term volatility is nothing strange; sometimes they wait to embrace unsecured uncertainty. They prefer to buy and sell business risks without blocking their fund in risky investments.« Previous · Next »