I get the fact that a lot of people still don’t feel comfortable investing in stocks after getting their fingers burnt in the last stock market crash. Well, I did too and it still hurts. Nevertheless, the stock market currently may just be the best place to invest hard earned money considering the various investment outlets. For example, 6-12 months Inter Bank Treasury Bills yield on average 12% respectively. Bond Yields on the other hand are a 11.5% or just under 12%. Savings deposit rates in banks according to CBN are just under 2% whilst fixed deposit rate hoover just under 10%.
Contrast this to the NSE All Share Index which has returned on average year to date 25%. See table below
Source: NSE Website
The amazing thing is that, all indices did well above inflation rate year to date. It is important to however, note that the QTD figures representing the period April to date has performed woefully. I figure that is due to the earnings season as investors profit from the sale of shares. QTD March 2013 showed that the stock market beat other investment outlets flat as the table below suggest.
Thinking of changing your mind about investing in stocks??
