23rd Mar, 2017
Investment ideas: Bill Gates, Mark Zuckerberg, Richard Branson, Donald Trump, Warren Buffet, and the list is endless… But every time you see these names in the same sentence you automatically predict that that sentence will end with $ (Like this one, See what I did there?)
Who wants to remain at the bottom of the food chain scrambling for the breadcrumbs when you can start small and build your way up to the top?
If you and I are on the same level, listen up sister (or brother).As you wait to receive your money tomorrow (Bankers, hope you aren’t broke already!) save that 10K you would have blown at 1824 and tuck it under your mattress – psych! Send it to your savings account – better still invest the money. There are all sorts of investment vehicles available to you. If you are one who is fascinated by the financial markets, the NSE is a good place to start.
Capital Markets
Equities market: It is probably the best time to invest in the stock market. Due to uncertainties surrounding the global markets as well as local factors, the prices on most counters are currently lower than their historic averages. This is because of a general plummeting of the market. Looking at historical performance, one would observe that any period of high returns in the stock market is preceded by plummeting prices so we are likely to witness surging share prices in the next few months.
- Fixed income space
In a period where the equities market is depressed, political temperatures are rising and global politics are seemingly against small emerging markets, most investors are drawn to fixed income. While the returns are generally not very high, there is the allure of less risk for a guaranteed return when investing in government securities. This assurance is derived from the fact that governments would not generally fail to pay for local currency debt. The Kenyan government securities provide a decent return of 8.5%, 10.5% and 11% for the 81-day, 182-day and the 364-day treasury bills. These are generally what would be called the money market instruments. On the long end of the fixed income market, government bonds with maturities of longer than 1 year are offering returns of between 12.5% and 14%.
- Gold Exchange Trade Funds
CMA has approved a Gold ETF to be listed on the Nairobi Securities Exchange. This is a simple way of investing in gold without necessarily buying actual gold while still benefiting from any increase in gold prices. Gold and several other commodities are considered as natural hedges against inflation and therefore investing in the Gold ETF is a good way of preserving wealth. It is also considered as a safe haven especially in periods of plummeting prices.
As we commence the journey to a million bucks! Let us touch base later folks!
Happy Investing!
