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Navigating The Season 2

 

Welcome to last Monday in the month of May. Here’s sending belated children’s day greetings to those of us who still identify as children.

As you are all aware, the last 2 newsletters have been dedicated to reviewing emails or letters from CEOs to their primary stakeholders about the perceived change in the markets and economic activities.

These reviews were aimed at helping us position and reinforce our budgets and investing activities accordingly. Clearly, this is the time to be certain about whether or not we want to follow the trend or buck it as we brace ourselves for a changing investment clime.

As a popular Yoruba proverb says, a foretold war never catches the handicapped man unaware. So, we need to be intentional and urgently so.

With rate increases by the US FED and the CBN (alongside several other countries); it is clear that central banks are keen on tackling inflation. This means that treasury bills and bond rates are expected to raise but for Nigerian investors; the question will be whether or not to continue investing locally since rates will still be below the inflation rate as well as the thorny issue of the continued depreciation of the Naira.

That said, in my opinion, this is not the time to shy away from investing if one can afford to. It just means you have to be selective about where you invest or choose to concentrate on only 1 asset class. For example, many people would rather grow their dollar mutual fund balances than buy local stocks.

For those still waiting for unpaid investments, I will encourage you to hang in there and endeavour to rebuild your savings whilst awaiting payments. Like we have said severally, no investment is risk-free and no investor is immune to cases of delayed returns.

In conclusion, I will like to quote the late racing great Ayrton Sienna “you cannot overtake 15 cars in the sunny weather but you can when it is raining”. Times of crisis are also times of great opportunities.

Till we meet again next week, do have a fantastic June!

 

Toyin Oguntuyi