CEM REPORT, FINANCE | Many persons have lost interest in investing in stocks unlike before when the stock market was the go-to for investment. Who would blame them considering that the economy of Nigeria and the world at large is presently facing troublous times with cost of living in many underdeveloped and developing countries on a steady rise. Businesses are struggling to stay afloat and the investing public is in dilemma on where and how to grow wealth in these unstable realities.
Expert has advised the investing Nigeria public to turn their investment eye to the stock exchange market as a long-term investment strategy. They opine that consistent investment in stocks is a sustainable investment portfolio that will yield profitable returns.
Speaking at the 8th biennial retreat of the Weppa Wanno Pyramid Club of Nigeria, investment Lawyer, Sunny Kanabe, stated that the Nigerian Stock Exchange Market (NGX) has been enjoying a steady run since the year started stressing that there is no better time to invest in the market than now.
Elaborating, he stated that stocks continue to yield returns over the years which makes them profitable for building wealth noting that shares hold wholesome benefits other than the popular dividend payments many are familiar with.
“Stocks are one of the most liquid assets you can think about. Within two to three days you have your capital back.
“You can buy and sell your stocks at any time. People invest in stocks to grow wealth.”
He noted that the boardroom politics which many hold as a yardstick to invest is not enough parameters but rather the company’s performance over the years.
Furthermore, Kanabe who is also the Founder, Pacific Trade & Investment Inc., stated that stock investment is a viable means of diversifying investment portfolios across various sectors of the economy and protecting such investment from unpredictable inflation.
“You have the ability to protect your investment from inflation because the market will always beat inflation in the long term.”
“If you spread your investment portfolio you’re better able to manage your risk.”
Bringing the discussion home, the investment legal practitioner said that investment in stocks should be explored as a tool to lift many communities out of poverty elaborating that investing in stocks can create wealth enough to develop communities without government support.
Kanabe warned that stock investment is not a “get-rich-quick” investment portfolio as the stock market also experiences down days. However, he said patience and consistency in growing stock investment will guarantee wealth growth, noting that as long as the business continues to exist, shares continue to yield returns.
“I must also warn that the stock market will not always go up, it will decline. It is normal, especially in financial crises (globally or local).
“The beauty of shares is, you are buying into the business therefore you have to have to know the company and monitor stock prices.”
Kanabe stressed that investment in stocks is not a gamble but rather requires a critical evaluation of the industry and the company’s performance.
Allaying fears about the safety of investing in the market, especially in regulatory policies, he said that the market has undergone policy reforms that have strengthened the market and protected investors’ funds.
“Nigerian stock market went through reforms to address several teething problems,” the market is now “heavily regulated to protect investors and their investments safe.”