How can we not waste our capital?

Ebrahim Alizadeh – Mohammad Alinejad: 99 thousand billion tomans of capital outflow during only the last 1.5 years. This has been just one part of an important event in the big fall of the Iranian stock market index. Many shareholders could not survive from August last year until early winter this year, when the overall stock index fell more than 35 percent. Most of them even accepted the loss, and finally, as the world of economics has recently estimated, more than 99,000 billion tomans of real capital has been taken off the stock exchange. Real people are ordinary people and shareholders, not legal people who are the main players in the market.

According to Tejarat News, in the size of this figure, it can be mentioned that last year, the total oil revenues of the country, according to the then Minister of Economy, was 10 thousand billion Tomans, and now we see that about 10 times this amount of capital has left the Tehran Stock Exchange. But this is not the only strange negative statistic of the Iranian stock market. Although there is no official figure for the amount of losses of micro-shareholders since August 10, 2016 and the historical ceiling of the total stock index, but using some data, we can understand the magnitude of this loss. From the time the market began to decline until the end of January 1400 (ie during the last 17 months), almost all market symbols had negative returns.

The average return of stock market symbols during this period was negative 40%. This means that on average, at least 40% of the shareholders’ capital is gone. Meanwhile, about five percent of stock exchange symbols have recorded negative returns above 75 percent. Now we must add to these figures the amount of damage that justice shares have inflicted on shareholders.

The value of the justice stock portfolio was 532 thousand tomans at the peak of the stock exchange index was more than 20 million tomans, but the figure that the justice stock portfolio showed at the beginning of February was 11 million and 500 thousand tomans. This means that the shareholders of justice stocks have also lost more than 40%.

Those who have indirectly liberalized the stock of justice are also experiencing bad conditions. According to statistics, more than 25 million and 500 thousand people are shareholders of provincial investment funds. Since this summer, the net value of shareholders’ assets has decreased by more than 106 thousand billion tomans. This means that each shareholder has lost an average of more than four million tomans during this period alone.

With this situation, how can you keep your capital safe? See five practical tips in this short video. Nobel Prize-winning economist Richard Trailer and Nasim Nicholas, author of The Strong Black Book, are among the most important people whose advice may be the best help in this regard.

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News Photo Description: This photo belongs to Bloomberg site.