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The Biggest Risks And Opportunities For Investors Right Now

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What profitable opportunities do investors see in a problem market? Due to COVID-19, the US government has closed most businesses. People work from home, communicating only over the Internet. The underlying uncertainty behind this pandemic, along with cuts in consumer spending, massive layoffs, and many other factors, quickly turned a strong US economic market into a troubled one. Most of the investors, acutely reacting to market changes, began to sell assets, cash them out, and buy gold. Experienced investors, however, have a different strategy.

Experienced Investor Tips

Warren Buffett, one of the most successful investors in the world, is not a fan of cash and cash deposits in banks: “The worst investment is cash and cash deposits in banks. Everyone talks about how great it is, but over time they devaluate. However, a good business will always grow in value.” Buffett also refers to gold, which he calls a “non-productive asset.” This is why Berkshire never invests large sums in precious metals.

Foreign markets also did not stand aside from the general panic caused by the coronavirus. The most noticeable drop in stock indices to a historic low occurred in Russia (-50.8%). Stock markets around the world have undergone changes: Brazil (-57.8%), Indonesia (-48.0%), South Africa (-46.3%), Egypt (-37.9%), UAE (-36.6%). In addition to economic instability, some countries face political instability, which makes investors worry about investment and savings.

Robert Allen, one of the most influential investment advisors, believes that keeping money in accounts or in cash is not the best solution. “How many millionaires do you know who built their fortune on interest from the deposit?” It is the most quoted phrase of the economist.

Carlos Slim, a Mexican business tycoon, and investor is also a proponent of the best opportunity in times of crisis: “Everyone who refuses to invest now is missing out on a huge opportunity.”

Why Invest During a Recession?

The answer is very simple – due to falling prices. Any market downturn should be viewed as a buying opportunity and not as a reason for panic. According to Warren Buffett, the most profitable and successful investments he made were during a market crash. So, what are the best investment options during the financial crisis?

1. Investing in the Stock Market

Those who are active in the stock market know the rule – you buy when the price falls and sell when the price rises. This strategy is very simple and beneficial. However, it is necessary to study the industry and company trends. If you decide to risk everything and invest where they promise big and quick profits, be prepared for big losses. According to Warren Buffett, experienced and smart investors will be able to teach patience and correct thinking, which, in turn, will lead to significant profits in the stock market.

If you want to buy stocks or other assets, you need first to learn as much as possible about the market and its opportunities. This will help you correctly assess the situations and understand how to act under any circumstances. A good idea is to visit the Forextime blog that will teach you everything you need to know about Forex trading. Trade from Nigeria any time you want!

2. Investing in Debt Obligations of Companies Experiencing Financial Difficulties

Investing in this type of debt securities such as bank loans, investment bonds, or high yield bonds at a discount. Such investments are quite unusual but very relevant in the context of a pandemic. Now there are many industries that have been significantly affected, for example, air travel, hospitality, restaurants, and casinos.

Usually, debt investments are made by institutional investors, but if you are an individual investor willing to take risks, this option is for you. Debt investing strategies for companies in financial difficulty carry a very high risk, so retail investors are encouraged to work with experienced debt investment managers with experience in restructuring, bankruptcy, and negotiating with financial and legal advisors and companies in order to maximize returns.

3. Investing in Real Estate

According to the Wall Street Journal article, more and more investors believe that real estate investment is now the most profitable option and the only opportunity to buy commercial real estate assets at bargain prices.

One such investor is LCP Company that has been successfully managing real estate investments for over 45 years. “It is too early to say how the current situation will affect the value of the commercial real estate, but we believe that now is the time to take advantage of market opportunities – prices for many properties will be sharply reduced compared to their value last year,” Richard Marquard, executive vice president of the company, shared in an interview.

Credit: Ripples Nigeria

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Business

JUST IN: Nigeria’s Inflation Rate Drops To 18.12%

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Nigeria’s rate of inflation dropped to 18.12 per cent in April 2021, the National Bureau of Statistics (NBS) said on Monday

It was 18.17 per cent in March, shedding 0.05 per cent to close at 18.12 in April.

The NBS said: “The Consumer Price Index, which measures inflation increased by 18.12 per cent (year-on-year) in April 2021.

“This is 0.05 per cent points lower than the rate recorded in March 2021 (18.17 per cent).”

The 0.05 per cent drop in April 2021 was the first time Nigeria’s inflation rate would fall in about 20 months as the last time it fell was in 2019 when the CPI shed 0.06 per cent, falling from 11.08 per cent in July to 11.02 in August.

In its April 2021 inflation report, the NBS stated increases were recorded in all Classification of Individual Consumption by Purpose divisions that yielded the headline index.

On a month-on-month basis, the headline index increased by 0.97 per cent in April 2021, this was a 0.59 per cent rate lower than the rate recorded in March 2021 (1.56 per cent).

The percentage change in the average composite CPI for the 12 months period ending April 2021 over the average of the CPI for the previous 12 months period was 15.04 per cent, showing 0.48 per cent point from 14.55 per cent recorded in March 2021.

The urban inflation rate increased by 18.68 per cent year-on-year in April 2021 from 18.76 per cent recorded in March 2021, while the rural inflation rate increased by 17.57 per cent in April 2021 from 17.60 per cent in March 2021.

On a month-on-month basis, the urban index rose by 0.99 per cent in April 2021, down by 0.61 the rate recorded in March 2021 (1.60 per cent).

The rural index also rose by 0.95 per cent in April 2021, down by 0.57 the rate that was recorded in March 2021(1.52 per cent).

The corresponding 12-month year-on-year average percentage change for the urban index was 15.63 per cent in April 2021.

This was higher than 15.15 per cent reported in March 2021, while the corresponding rural inflation rate in April 2021 was 14.48 per cent compared to 13.99 per cent recorded in March 2021.

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SMEs Has Key Role In Economy Post-COVID –Institute

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The National Institute of Marketing of Nigeria says Small and Medium Enterprises will play a significant role in the post-COVID-19 world.

In a statement, the institute said conversations on this would be held at its two-day Annual Marketing Conference scheduled to hold later in May.

Speaking ahead of the AMC, the President of NIMN, Tony Agenmonmen, said the conference’s theme was informed by the “very significant roles” that SMEs played in the economic and social lives of the nation, in terms of employment generation, poverty reduction, and contribution to the Gross Domestic Product.

Agenmonmen said the AMC would be an avenue to present the account of stewardship of the institute’s leadership for the year ended December 31, 2020.

He said, “This will be my last AMC as the president and chairman of the council of our great institute.

Therefore, I will also use the occasion to present my stewardship for the over four years that I have had the privilege of leading my colleagues in the council, to lay a solid foundation and an irreversible growth for the institute.”

Meanwhile, the institute said it had inaugurated an eight-man disciplinary panel to look into the activities of quacks in the profession.

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Edo Government To Commence Building Of Int’l Market For Electrical, Electronic Materials

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As part of efforts towards making Edo State a preferred investment destination, the state government has facilitated a memorandum of understanding (MoU) with investors for the building of the Monee International Market in the state.

To facilitate the process, the government had earlier granted a waiver to the investor in the payment of planning fees, besides other government efforts.

The MoU was signed by members of the Board of Trustees (BOT) of Monee International Market, the developer, Alicesons Property Market Limited, and lawyers for both parties at the ESIPO office in Benin City.

The international market located on Agbor Road, Benin City is for the sales of electrical and electronic materials as well as building materials.

On completion, it will create 20,00 direct and indirect jobs for the populace and also be seen as a significant economic impetus for the development of the state.

The investor stated that it will alter the original plan of the market to increase the number of building so as to accommodate up to 2,860 stores from the original 1,290.

Speaking at the MoU signing ceremony, the Managing Director of Edo State Investment Promotion Office (ESIPO), Mr Kelvin Uwaibi assured the investor of government support towards completing the project soon.

According to him, “As a government, you have our support to move to site two weeks from today.

“Let me say that God’s hand is in this project. We are doing this and prosperity will hold us accountable.

”We all want to change Nigeria for the better and this is one thing we are doing to bring that change; working with all sincerity to make good things happen in our state which will legitimately put money into the pockets of our people through trading will help the Nigeria economy,” he added.

Chief Sam Awiaka who spoke on behalf of the BoT of Monee International Market said that the project has lingered for years.

He commended the courage and efforts of ESIPO in facilitating the project, urging stakeholders not to relent until the project completion.

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