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Where to invest your money in H2 2020

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There are two kinds of people in the world: The ‘glass-half-empty’ kind, and the ‘glass-half-full’ people. Where some see problems, others see the opportunities – same glass, but different perspectives. 2020 might have left very little hope to hang on to, but the world is still in motion.

Amidst the chaos, many have found their diamonds in the rubble – and many more will. These people, however, will be those who are willing to adapt to the changing times by repositioning themselves to leverage the opportunities that arise.

The Covid-19 pandemic has proven to be a holistic challenge, bringing to the fore a myriad of issues. It has caused a dent in the revenue/ disposable income of many businesses and individuals alike, shaken the very balance of the economy with many countries heading for unprecedented recessions, and left everyone with so much uncertainty.

Yet, we are at the cusp of a new dawn. Processes are changing, new industries are emerging, and money is changing hands. Flexibility, automation, and sustainability are just some of the words that will make all the difference in the world of business.

Dr. Ola Orekunrin Brown, the founder of Flying Doctors – a healthcare investment company – had, at a Webinar, offered insights into some of the industries that are expected to succeed given the changing times, and they have been outlined below. But be warned, a lot of them are not your usual kinds of investments.

Investment opportunities to leverage in H2 2020

Online Events

One of the many trends that emerged in recent times, as a result of the Covid-19 pandemic induced lockdown in many parts of the world, is a huge dependence on internet technology and digital media. Everybody went indoors – and online. The entertainment sector found its home on social media through Instagram Live parties, Tik Tok, and the Houseparty App.

Companies went online as well, leveraging digital technology like Zoom, Microsoft Teams, and Slack. Even the lifestyle industry went online with online gym classes, yoga classes, and even karate classes. Not only have they provided much-needed solutions, they have also come with the additional benefit of convenience.

A good example of this is Eric Yuan, the founder of Zoom, who joined Forbes’ billionaires’ list for the first time as a result of the increased use of Zoom for work meetings. Apptopia, an App tracking firm, reveals that Zoom was downloaded 2.13 million times around the world on 23 March, the day the lockdown was announced in the UK– up from 56,000 a day and two months earlier.

Online education

Another feature of the digital economy lies in the education sector. With schools forcefully closed, classes have had to go online. Online courses, training workshops, and even full degrees will become more normal as those who work from home will see these online education courses as an opportunity to develop themselves with little effort.

Investments here will be even more fostered by access to international markets, thereby increasing the market size.

Research And Markets predicts that the online education market is poised to grow by $247.46 billion during 2020-2024, progressing at a CAGR of 18% during the forecast period.

Institutions that are too big to fail

The stock market is expected to be even more volatile, given the overall unfavourable economic terrain and a high level of uncertainty – especially with all the talks of a recession coming. In H1 2020, the more favourable companies to invest in are those that have stood the test of time – the stocks that are too big to fail.

Many of these stocks have been in existence for decades and have been able to attain a level of stability as a result of their large market share and stable structures. You want financially strong companies and the reason is not far-fetched; the goal is to put your money behind the companies that are strong enough to withstand the storm to a good extent.

Telecommunication

Another by-product of the Covid-19 induced lockdown is the increased need for internet services. Dr. Ola explains that the use of the internet as well as the move to work-from-home, are some of the megatrends of the times.

Good internet connectivity has proven to be the lifeblood that keeps digital entertainment trends, digital work trends, digital lifestyle trends, digital entertainment trends, and a huge chunk of the communication we have today. As a result of this, companies in the telecommunication industry have begun experiencing growth in revenue and earnings. Investments in this sector will most probably be worth your while.

Distribution & E-commerce

When the Okada ban took place, several motorcycle companies that were affected were forced to pivot from transporting people to moving items as full-scale delivery businesses. While many might have thought that a bad idea, the lockdown has undoubtedly contributed to the development of this industry.

The e-commerce industry is also expected to thrive with trade moving predominantly to the internet. Investments in distribution companies and e-commerce businesses are also expected to be worth your while.

Stronger currencies

One of the major hits of the pandemic is the Nigerian foreign exchange market which has now become highly volatile. The demand for the dollar far outweighs the available supply and this has forced importers and speculators alike to scramble for what is available in circulation.

Given the challenges with the FX market, international spending on foreign denominated expenses like tuition fees or international loans will come at an increased cost. To mitigate foreign exchange loss challenges, investments in USD denominated equities and Eurobond funds will help you withstand the storm. While gains here could have you betting against the Naira, having foreign investments in your investment portfolio will come in handy.

Agriculture

The Agricultural industry is an expected gainer. One of the reasons for this is that local supply chains will expand, given the restrictions on the global supply chain as a result of the lockdown and the border closure. While this will also thrive, Dr. Ola Brown, explains that jobs will only be created in the short term.

This is because fewer hands will be required as productivity, better processes, and mechanization systems increase. An example of this is the new trend of robot herders in the United States. This is even more so as we compete with the rest of the world in production. Needless to say, Agriculture will always exist, given the need for food, as well as the rising global population.

Healthcare

While the Covid-19 pandemic has a direct impact on the healthcare industry, the industry is a complex one. The first reason for this is that, with the healthcare infrastructure deficit in Nigeria, the government will need to invest in it to provide wide access.

With subsidies on healthcare, the free market in terms of investments might not be as lucrative with more people opting for government healthcare. However, given increased investments in the sector and the move to preventive health practices, the industry remains attractive.

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Business

Hoodlums loot Shoprite store in Ilorin, stole iPhone 11 mobile sets, others

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Some suspected hoodlums l allegedly looted the Palms Mall on Fate road, Ilorin, Kwara State capital. The mall hosts stores of Shoprite, and Lifemate Furniture among other stores including Mobile phones retailers.

This was revealed by an eye witness.

He said, “They allegedly stole iPhone 11 mobile sets, other mobile sets brands, Refrigerators, and households items among others.”

According to him, the suspected hoodlums forced their way into the Mall after they have stormed and allegedly looted Kwara Agro Hall, an agro resettlement centre, where they carted away Aluminium roofing sheets, mattresses, bags of cement and bags of flour among others.

Back story: Similarly, similar incidents had occured in Lagos when suspected hoodlums looted at Shoprite Malls across Surulere, Sangotedo.

According to reports, suspected thugs from Orile have invaded the mall and the neighbourhoods.

The alleged looters were seen with a cartload of goods on the streets along Ajah Road.

An eyewitness account also submitted that the hoodlums were looting shops around Bode Thomas and Adeniran Ogunsanya.

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Business

India seeks closer ties with Nigeria as trade volume reaches $14 billion

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India has expressed its readiness to deepen economic ties with Nigeria towards promoting investment and trade between both countries.

Amb. Abhay Thakur, High Commissioner of India to Nigeria, said this during a courtesy visit to Gov. Abdullahi Ganduje on Friday in Kano.

Thakur noted that India and Nigeria had long-standing relations based on mutual respect that predates the independence of the two countries.

”We are Nigeria’s largest trading partner and the country is our largest trading partner in Africa.

“Our bilateral trade volume reaches $14 billion in 2020 and we export various goods ranging from machinery and agriculture products to the tune of $3.5 billion to Nigeria,” he said.

Thakur called for greater bilateral trade co-operation between Nigeria and India as a way of fostering the existing friendly trade and economic relations between the two countries which dated back to 1960.

In his response, Ganduje said that relations between the countries have been warm and cordial; and have witnessed growth and transformation.

The governor called for effective collaboration between India and Kano on energy, health care and film industry.

He said that Indian farm implements have helped to boost rice production in Nigeria.

Ganduje said that Indian companies are doing very well in the state including an hydro power project and the Indian rice mill in Kano which he said is the biggest in West Africa.

He said that the state government has sponsored hundreds of students to study in India.

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Business

#EndSARS: LCC says it didnt remove CCTV before Lekki Toll Plaza shooting

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The management of Lekki Concession Company (LCC) has disclosed that the perimeter CCTV cameras were not removed and there was no instruction from anyone to remove the perimeter CCTV cameras.

This was disclosed by the management of the company in a press release, which was released by the company.

Backstory

Several allegations had been channeled at the company by Nigerians over the removal of the CCTV cameras at the Lekki toll gate on Monday a few hours to the shooting of #EndSARS protesters at the toll gate by security operatives.

However, members of the public have aired their respective opinions on social media about the alleged removal of the perimeter CCTV Cameras as some believed it was an attempt to compound the ongoing civil unrest and the breakdown of law and order.

 

What they are saying

The management of Lekki Concession Company strongly condemns the shooting of peaceful protesters at the Admiralty Circle Toll Plaza on 20th October 2020.

LCC management stated that there was no instruction from ANYONE to remove the perimeter CCTV cameras, and the company would never support or condone such an unscrupulous act meted out on unarmed protesters.

However, in the press release LCC reiterates that as the perimeter closed-circuit television system (CCTV) are Mobotix Digital cameras, it is impossible for the cameras to be removed, as removing them will require the use of machinery to reach the heights that they have been installed.

Other issues discussed

The company provided insight as to why there was a total power outage at the toll plaza on Monday Night, the company said;

“LCC receives power from the IPP grid, the power albeit stable is taken off from time to time. At such times, LCC relies on the backup generators for power supply. However, following the declaration Of the curfew by the state governor, LCC withdrew ALL her staff from the office locations. This is the reason why the lights could not be restored when the mains from IPP went Off temporarily. This is verifiable.

Additional statement in the press release reads; “CC sincerely regrets the unfortunate incident at the Lekki toll plaza and condemns the shooting of unarmed protesters.

“Since the commencement of the protests, the company cooperated with the protesters from, identifying with the cause and need to end the police brutality. This prompted the company to provide lights, toilets among other items to the youths as a show of solidarity.”

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