When holding onto Cash is best
NaijaRock
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Posted by Felix Okoli on February 19, 2010 at 05:40:58:
In Nigeria now, with the state of the economy and the virtual freeze in major market instruments, holding onto cash for speculative purposes is becoming the better option. Gone are the days when you invest in the capital market for stocks and bonds. You will cry for the millions of people that did that only to later wake up losing beyond their personal investments. The thing is that even a lot of people collected loans including certain bank directors and got involved in stock speculation but when the bubble burst, they lost all.
It is better to have cash or access to liquidity now in a country due to the increasing opportunities for bargain you can get from things like land, accommodation, stocks(due to their bottom prices) and even investing in alternative sources of power for supporting your business. Truth is the Manufacturing sector is really having a hard time due to the credit squeeze in the country as well as the unwillingness of banks to offer loans easily. Someone who has cash or a good access to it can be able to thrive in Nigeria because presently a lot of businesses are closing down, not just because of uncertainty in Nigeria's economic future but also due the poor level of liquidity in the system. Now is the best time to invest in Nigeria because investment opportunities and prices of assets are getting lower to their real values and inflation is being minimized. The problem then lies in getting and holding onto cash where available for grabbing good market opportunities.
Comments:
In Nigeria now, with the state of the economy and the virtual freeze in major market instruments, holding onto cash for speculative purposes is becoming the better option. Gone are the days when you invest in the capital market for stocks and bonds. You will cry for the millions of people that did that only to later wake up losing beyond their personal investments. The thing is that even a lot of people collected loans including certain bank directors and got involved in stock speculation but when the bubble burst, they lost all.
It is better to have cash or access to liquidity now in a country due to the increasing opportunities for bargain you can get from things like land, accommodation, stocks(due to their bottom prices) and even investing in alternative sources of power for supporting your business. Truth is the Manufacturing sector is really having a hard time due to the credit squeeze in the country as well as the unwillingness of banks to offer loans easily. Someone who has cash or a good access to it can be able to thrive in Nigeria because presently a lot of businesses are closing down, not just because of uncertainty in Nigeria's economic future but also due the poor level of liquidity in the system. Now is the best time to invest in Nigeria because investment opportunities and prices of assets are getting lower to their real values and inflation is being minimized. The problem then lies in getting and holding onto cash where available for grabbing good market opportunities.
Comments: