January


Piggy notes with interest that “January” means different things for different people.  In the stock market world, there is what is called the January Effect which is a perceived seasonal increase in stock prices during the month of January. In fact, it is a calendar effect specifically in relation to the stock markets anomaly experienced in the month of January, characterised by an increase in stock prices. Stock market players attribute this rally to an increase in buying, which follows the drop in price that typically happens in December when investors, engaging in tax-loss harvesting to offset realized capital gains, prompt a sell-off. Another possible explanation is that investors use year-end cash bonuses to purchase investments the following month.

In the world of Livestock Farming, there is the January disease or Theileriosis, a tick-borne disease common between December and March but is most prevalent in January. The disease is spread through the bite of the brown ear tick and can have devasting effects for cattle farmers.

There is however another form of a January Disease. Most folks may relate to this kind of “financial disease” that occurs when households and individuals have used up more money than they were supposed to during the festive season which consists Christmas and New Year celebrations.  Another phenomenon is that in the month of January, there is generally an increase of other obligations like rentals, school fees and other financial obligations.

While the issue of a January disease is rather seasonal, Piggy is concerned that the weakening economic fundamentals in Zimbabwe are forcing more households into poverty. Recent figures from the Zimbabwe National Statistics Agency (Zimstats) point to the fact that Zimbabwe’s Poverty Datum Line (PDL) for an average family of five reached $3,700 last November 2019, a 15.7% rise from October’s $3,160. The Total Consumption Poverty Line (TCPL) is a combination of food and non-food items that an average family requires for it not to be deemed poor.  

The hard question is; How can one escape from Poverty?

The fact here is that people who do not save or invest money are likely to be affected by things such as the “January Disease”. It therefore requires a change of one’s mindset in as far as investing is concerned. Here is an interesting illustration from Money Marketeers on why the poor remain poor;

Piggy believes that the reason why most people do not experience financial freedom is because they are always caught up in rat-race. Here is how to escape it;

In conclusion, the bottom line is that for one to start making passive income and developing new income streams, financial education is key. Piggybankadvisor.com is a platform that provides access to educational resources covering areas such as economics, stock and forex trading, cryptocurrencies, budgeting and retirement planning. On the other hand, Piggy’s Research Lab contains E-books that enable one to get started in the interesting world of trading and investing.

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