In the world of finance, many are looking for where to get accurate and timeline information that would help them grow businesses or direct them to investment opportunities.
These and more Nairametrics does efficiently as one of our core objectives.
We have collected some of the most interesting questions with answers provided by our team of experts. Read below:
What is the difference between trading and investing?Â
Trading requires a lot of time, energy and involves capturing the market fluctuations. You are either betting the market will appreciate or depreciate over a long period. The aim is to make differentials on the up or down of the market environment. For example, if you are bullish on an asset, you are trying to say it will go up for either minutes, seconds or maximum weeks, then you are out.
Investing is usually a long-time horizon. You are looking at the fundamental analysis of an asset and trying to beat certain benchmarks like inflation. The goal is to capture the asset for the long perspective. For example, Nigerian banks had a fair return in 2021 because of low-interest environment and betting that 2022 will be hawkish. Investing involves forecasting not necessarily knowing when it will happen but you have taken a position at a value.
Investing is suitable for people who have a different profession or doing other things and don’t have time to spend their money. The key is to buy at low and sell at high.
- NB: Just 2% of traders are successful.
What is the difference between “frugal” and “cheap”?
Frugal relates to priority or being economical while cheap relates to cost or price.
Is it advisable to plan for the death of a spouse? What is the best way to do this?
Despite perfection and the fact that we love our loved ones, planning for the unexpected is important. Having emergency funds, life insurance and a contingency plan should be put into consideration and planned passively. It is advisable to have cash equivalents saved in case of any emergencies.
There are different ways to plan for emergencies:
- Investment trust
- Will
- Insurance
- At certain intervals, adjust your investment portfolio and inform your partners and kids about your assets.
I just got married and I’m planning on having children, how can I ensure I have enough funds to take care of them on one income. When should I save for their education?
To ensure you have enough funds to take care of a family, aside from when the wife has to take care of the kids and go off work, both parents should have income coming in to take care of the family. One way to increase income can be by increasing the value you offer in your occupation field. The best thing is to start saving for children’s education as soon as you are sure you want to have kids. Education isn’t cheap anymore.
What is the impact of the increased U.S interest rates on Nigerians?
The US interest rate is important in the global economy. Especially in Nigeria, it is because of the ‘dollarisation’. Meaning that when America coughs, the whole world catches a cold.
The direct impacts are:
- Cost of borrowing – Some banks and multinationals borrow in dollar-denominated assets. If it is fixed and not floating (rates can be adjusted), it means they will have to pay more.
- Cut margins – When the cost of borrowing goes up, it has an inflationary effect. Because industries will want to cut costs.
- It makes the global economy less liquid and causes price distortion and chaos in some areas.
What is the difference between FAANG and MANG stocks? With interest rates rising, which is better to invest in?
- FAANG – Facebook, Amazon, Apple, Netflix and Google
- MANG – Meta, Amazon, Apple, Netflix and Google
As regards investing, historically they have outperformed various indexes. They are the biggest and best performing American Tech companies. However, in terms of whether they are great investments will depend on their prices and what investor sentiment is about these companies’ future in going forward. Buy at rates you have opportunities to multiply. You can invest in any of the companies.
I am a polytechnic graduate. I have low credit, equivalent to 3rd class in accounting. What step can I take in pursuing a career in accountancy?
Accounting is a course that creates opportunities regardless of the BSc grade. One opportunity can be getting chartered. That’s being certified either with ICAN or ACCA. Being chartered creates a new form of opportunity professionally not academically.
The second opportunity is accounting can be broken down in different aspects, auditing, taxation, cost control etc. Pick a specific aspect or field of accounting and increase your value.
