Sometimes, we think we are investing when we are in fact speculating. Investors seek to generate a satisfactory return on their capital by taking high, average or below-average risk whilst speculators tend to constantly seek to abnormally high returns on what can go either north or south. So, is speculating bad for you? Absolutely not. However, the proportion of your investable funds assigned to speculation should reduce significantly as you grow older because the older you get, the lower the risks you should be taking. So, should you be investing or speculating now in Nigeria and what asset class should you be considering? Investing is what you should be doing now in equities because prices are cheap. Yes! You heard right. Based on your investment objectives and risk profile, the sustained bears and subsequent declines in the local bourse present great opportunities and timing to invest in stocks. High risk, long-term investors can take advantage of potential capital appreciation and capital gains plus stream of dividend payments associated with stock purchase by investing now. Recent global events (FED rate hike in the United States, International trade e.t.c) led to the sale of assets in emerging markets not excluding Nigeria. It is important to state that the peculiar situation of Nigeria, given the upcoming elections also worsened investors actions. What this means is that foreign investors are nervous about the upcoming elections and are taking their funds to more stable markets like the U.S- where interest rates have been hiked twice this year. Good news is that this is yet another reason to take positions because you should be running into the market when everyone is running out. Ironic? Well, it has proven to be the best way to invest since the 1900s – ask Warren Buffet. In the Fixed Income Market, yields declined gradually in 2018 compared to 2017 as the Federal Government restructured its debt profile by refinancing short term domestic debts via the issuance of Eurobonds. Currency stability and Market liquidity remains of significant concern to the Monetary Policy Committee as the quantum of liquidity is expected to increase as we go further into the year. Notwithstanding, yields have risen above December 2017 levels, notably in the month of August 2018 buoyed by outcomes of the last Treasury Bill Auctions for August as stop rates closed higher by an average of 1.52% across all tenors. Thus, we are upbeat about further widening in yields as currency stability remains critical for the monetary policy makers and speculative elections risks persist. What does this mean for your short-term, low risk objectives? Stay in short term, low risk instruments like money market portfolio service which offers access to investments including The ARM Money Market Fund and Treasury Bills to gradually lock in competitive yields while ensuring liquidity for prompt positioning in new opportunities towards increased yields and meeting short-term financial obligations. We would like to work through a simple review of your risk profile and investment objective to enable you maximize existing or potential investment opportunities as applicable. You may also avail yourself of free financial planning consultations with our team of professional wealth advisors. Kindly send us an email at email@example.com or call 01-2701003, 01-2712922 to provide more information about your preference and a wealth advisor will contact you within 24 hours.