Connect with us

Investment

Despite Grim Economic Outlook, Investors Are Not Spooked

Published

on

Traders Wall Street

Wealthy investors are planning on making “considerable additions” to their investment portfolios this year – despite red-hot inflation and historic interest rate rises to combat it, stagnant growth, tax hikes, Putin’s war in Ukraine and growing Covid-19 cases.

This is the assessment from Nigel Green, the CEO and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations, as the U.S. Federal Reserve moves to raise its key policy interest rate by half a percentage point, the biggest jump in 22 years. It has also vowed to shed assets from next month.

He comments: “Just when we all believed we were through the worst of the pandemic’s main economic challenges, the investment landscape shifted again.

“We’ve got inflation that’s running at its highest level in decades and the world’s most influential central banks are raising interest rates, and will continue to do so in the near-term, in efforts to cool it.

“There are the global supply chain issues; the Russia-Ukraine war; and China’s Covid crisis, and the so-far-failed attempts to halt it, adding to global inflationary pressures by further disrupting supply chains in the ‘factory of the world’.

“Plus, the slowing of the world’s second-largest economy, which has been one of the fastest-growing for the last few decades, could have a dire ripple effect across the globe. There could be potentially considerable consequences for overseas trade, financial markets, and global economic growth.”

However, even in this stormy backdrop, high-net-worth investors are moving to top up their investment portfolios.

“Despite the headwinds, our clients around the world are telling us that they are seeking to make considerable additions to their portfolios between now and the end of the year,” confirms the deVere CEO.

“As in-the-know investors, they understand that regardless of the headlines, much of the current news has already been priced-in by the markets.

“And they know that if there should be more ‘unsettling’ news to come, which seems likely, it will create significant buying opportunities to build their long-term wealth by topping up their portfolios at lower entry points.”

As the reports of a global recession ramp up, there remains one clear way for investors to maximize returns relative to risk: the time-honoured practice of portfolio diversification.

“A considered mix of asset classes, sectors, regions and currencies offers protection from market shocks. A good fund manager will help investors capitalize on the opportunities that volatility brings and sidestep potential risks as and when they are presented,” explains Nigel Green.

He concludes: “Savvy investors are staying invested and, in fact, increasing investments and not paying attention to or being spooked by short-term fluctuations and headlines. Working alongside an adviser, this is a solid strategy.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Investment

China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

Published

on

General Images Of Residential Property

China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

Continue Reading

Investment

BUA Foods Invests $200m in Lafiagi Sugar Estate Expansion

Published

on

BUA Foods, a leading Nigerian food conglomerate, has announced an investment of $200 million in its Lafiagi Sugar Estate located in Kwara State.

The Managing Director of BUA Foods, Ayodele Abioye, revealed this during a press briefing held at the company’s headquarters in Lagos.

Abioye said the leading company plans to enhance its integrated sugar estate project to reduce reliance on foreign exchange for raw materials.

The project includes the construction of a sugar refinery, ethanol plant, and supporting infrastructure aimed at bolstering local production.

The Lafiagi Sugar Estate spans approximately 20,000 hectares and integrates various components such as a sugar refinery with a daily capacity of 20,000 metric tonnes, along with an industrial ethanol plant.

Abioye underscored the importance of reducing dependency on forex for sourcing raw materials, citing challenges faced due to Nigeria’s lack of industrial agricultural production of sugarcane.

BUA Foods aims to bolster its local supply chain by engaging with communities and establishing partnerships in agriculture.

Abioye emphasized the need for sustainable practices and community involvement in fostering self-sufficiency.

The company’s investment reflects its dedication to expanding domestic production capabilities and driving economic growth in Nigeria’s agricultural sector.

Continue Reading

Treasury Bills

Nigeria’s One-Year Treasury Bill Oversubscribed by 300%

Published

on

FG Borrows

Nigeria’s one-year treasury bill was oversubscribed by 300% during the recent Primary Market Auction conducted by the Central Bank of Nigeria (CBN) on Wednesday.

The auction, aimed at rolling over maturing Nigerian Treasury Bills worth N1 trillion, saw unprecedented demand for the one-year T-bill.

Investors offered a total of N1.87 trillion for the N600 billion on offer, indicating a significant appetite for government securities. Out of the total subscriptions, N908.75 billion was allotted, with stop rates set at 19%.

The auction covered maturities across three different tenors: 91-day, 182-day, and 364-day bills, with varying amounts on offer.

While the 91-day bill received N39.90 billion in offers, all were sold, and the 182-day bill garnered N76.83 billion subscriptions, out of which N51.35 billion was allotted.

Managing Director of Arthur Steven Asset Management, Tunde Amolegbe, attributed the remarkable performance of the one-year bills to investor confidence in the current government and its reform initiatives.

He highlighted investors’ preference for higher rates due to signals from the CBN indicating tightening monetary policies amid accelerating inflation.

Experts view the oversubscription as a testament to investors’ trust in the government’s reforms and management of the country’s debt obligations.

The auction reflects a move by the CBN to address liquidity in the financial system while managing Nigeria’s debt obligations effectively.

The significant oversubscription signals robust investor confidence and highlights the attractiveness of Nigerian government securities despite prevailing economic challenges.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending