The US stock market is on a bullish run that started in April last year after suffering a devastating sell-off when the very first wave of lockdown was announced.
Since then the stock market is up and had continued at this blistering pace in the new year. Our analysts also diversified our portfolio and picked up some US-listed stocks last year and plan to add a few more to our Stock Select List.
We will get to this in a bit, but first, let’s check out the home front.
The National Bureau of Statistics released its 2020 4th quarter GDP numbers showing the economy just about eked out a slim 0.11% growth. The implication of this is that we are officially out of recession.
I recommend you read this Nairametrics article where our Blurb Team explained how we were able to get out of the recession. We will also be publishing our monthly Macroeconomic Review very soon and as usual, our SSN Subscribers get to read it first.
You will agree with me that any growth is much better than a contraction especially if it is able to get us out of a recession. The NBS also released its inflation numbers earlier in the weak showing Nigeria’s headline inflation rate for the month of January was 16.47%.
No surprises here as I have often stated that Nigeria’s inflation rate will rise to over 16% as the effects of fuel price increase, electricity price hikes start to filter into the cost of goods and services.
This set of data is by no means good for the country and as things stand, we will continue to be in stagflation for some time to come. My immediate worry however is how do we hedge against all these headwind risks?
With the inflation rate galloping and economic growth ever so fragile it is increasingly precarious to leave all your investments to the hazards of economic stagflation. When an economy is in this sort of dire straits, you flee to save havens to hedge against risks.
Unfortunately, there is hardly anywhere else to turn to. Nigerian stocks have mostly reached their peak, so value is hard to find. Interest rates on risk-free government securities are extremely low and real estate just cannot generate enough yields to hedge against inflation. So, what does this leave us with? Three investments; Cryptocurrency, Agri-tech, and US Stocks. I chose US Stocks for now,
Investing in US Based Stocks
In Week 31 of this Newsletter, I delved into the world of US Stocks and how you can invest in them. If you have not read that newsletter, I suggest you go ahead and do so before reading the rest of this newsletter.
In that newsletter, I mentioned some of the US Stocks I had purchased and included in my portfolio. Let us recap for a bit and let you into how these stocks are performing today.
1.Comcast Corporation – This is a US-based cable operator that offers a variety of consumer entertainment and communication products and services.
How is it performing? The stock is up 15.78% since I purchased it.
2. Impinj Inc. – This is another internet-based company this time it helps power the world of IoT, the Internet of Things. The stock was trading at $42 when we mentioned it in December and up 78% since then.
How is it performing? The stock is up 180% since I purchased it.
3. Pinterest Inc – This company needs to introduction. It is a social media-based company that allows users to pin images and videos they receive online on the website.
How is it performing? The stock is up 47.34% since I purchased it.
4. Zynga – This is a mobile gaming company that makes money from selling advertising and in-app purchases to its users.
How is it performing? The stock is up 49.82% since I purchased it.
US Stock Pick of the week
The rest of this content is for our Premium Newsletter Subscribers SSN. Subscribe here to receive this newsletter every week via your email.
Pension transfer window is open but not all PFAs are good for you…
The Transfer Window now opened by PENCOM gives you the opportunity to jump ship.
Just like birthdays remind us of how old we are getting; it should also remind us of how close we get to retirement.
Many young people have vigorously started saving for their retirement with their referred or prefered choice of Pension Fund Administrators (PFA), but if you are one of them, are you sure that PFA is good for you? PENCOM has opened a Transfer Window so you can freely change your PFA if you feel they are not doing well or if they are not right for you.
Now comes the next questions, “Is my pension safe? how do I know which PFA is good for me?”. Don’t fret, this short article and chart from http://naijapension.com/ was written to help you.
The list contains the performance of the retiree fund of key PFAs. If your PFA is currently lagging on this list, you have nothing to worry about. You can easily switch to a better PFA and avoid stress later on; the Transfer Window now opened by PENCOM gives you the opportunity to jump ship. Funds to note are Funds II which is the default fund for RSA holders of 49 years and below and Fund III which default fund for RSA holders of 50 years and above.
Other Funds like Fund IV are only for retirees while Fund 1 is request based only however NOT accessible to Retirees and active contributors of 50 years and above
Your preference may differ, but we’d love to know what you think of the list.
Ecobank to pay customers N5 for every dollar received
Ecobank will pay N5 on every Dollar so beneficiaries will not only get the foreign currency sent from their family and friends abroad, they will also get extra Naira.
Ecobank has implemented the CBN scheme which offers N5 for every Dollar received into domiciliary accounts or as cash over the counter. Korede Demola-Adeniyi; Head, Consumer Banking, Ecobank Nigeria, who announced this in Lagos stated that the decision is in line with the CBN directive and fully aligns with efforts to encourage the inflow of diaspora remittances into the country. She noted that the “CBN Naira 4 dollar scheme” is an unprecedented incentive for senders and recipients of international money transfers.
Korede Demola-Adeniyi said that the scheme takes effect from 8th March and will run till 8th May, 2021. “Ecobank will pay N5 on every Dollar so beneficiaries will not only get the foreign currency sent from their family and friends abroad, they will also get extra Naira”, she stated.
Only recently, Ecobank had a first of its kind virtual Diaspora Summit to discuss opportunities for Nigerians living abroad and the various platforms available to assist them with their investment decisions and remittance needs. The event had major players in the remittance space, diaspora audience, government officials and notable stakeholders in attendance.
Further, the Managing Director, Ecobank Nigeria, Patrick Akinwuntan has disclosed that apart from consistent engagement with Nigerians in the diaspora, Ecobank is leveraging its digital technology to make remittances to Nigeria and Africa easy, convenient and affordable.
Mr. Akinwuntan stated that growing evidence has shown a positive relationship between diaspora remittances and economic growth. “Ecobank will continue to pursue its mandate of helping to enhance the economic development and integration of Africa, through the 33 countries where the bank operates on the continent. Ecobank’s Rapidtransfer and mobile app (Ecobank Mobile) enable Africans, wherever they are, to easily and instantly send money to bank accounts, mobile wallets and agent locations across 33 African countries”, he stated.
Ecobank Nigeria, a member of the Pan African Banking Group is committed to supporting Africans in the diaspora by providing advisory services, remittance solutions, investment options and financial planning schemes. The bank also offers mortgages, treasury bills, capital market instruments, among others.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Seplat falls into a loss in FY 2020
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.