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If you have ever witnessed a professional golf tournament or played golf yourself, you know how challenging and competitive a sport it is.

So much can go wrong very quickly, and the margin of error is extremely low. To be remarkably successful in golf, there are certain skills to master that are quite similar to the skills you need to become a good investor.

Get off to a good start

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Get off to a great start

In Golf, your first shot must be perfectly accurate and should set you up for a great second shot. …

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CBN reduces interest rate on savings

Central Bank of Nigeria (CBN) instructs Banks to peg the minimum interest rate on savings deposit at 10% of Monetary Policy Rate (MPR) per annum.

The CBN has reviewed the minimum interest rate on local currency savings deposit to 10% of the MPR (1.25% per annum), effective immediately.

This implies a decline in interest rate, compared to the previous rate (3.9%, being 30% of the MPR), rendering savings in commercial banks less attractive. We think that this policy reflects the CBN’s focus on driving economic growth, by increasing credit flow to the real sector.

The MPR is the benchmark rate that guides banks’ lending rates, and the interest rate on bank deposits. This policy would ease the pressure of funding costs for banks, as it lowers the cost they incur for holding deposits. Bank depositors are, however, left with the shorter end of the stick as return on savings further thins out. …

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The global spread of the COVID-19 virus has been rapid and unprecedented. The effect of the ensuing pandemic has led to devastating outcomes, with the global economy projected to decline by 5.2% in 2020.

Having said that, the recovery in 2021, forecasted by the IMF, will be gradual.

On the local front, the yield on the once-cherished treasury bills has dropped as low as 3.50%, causing investors to act in a riskier manner. As they hunt for higher yield, they may be lured by unregulated investment companies who promise enormous and unreasonable returns on investments.

Can investors still earn returns during this economic decline?


Zedcrest Investments Managers

SEC Licensed Digital Wealth Manager

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