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Why Soaring Stocks Could Be Bad News For The Economy

By Abdulazeez KurangaPosted on Posted in Africa & World EconomyTagged , , , , , , , , No Comments on Why Soaring Stocks Could Be Bad News For The Economy

While it’s had some ups and downs, the stock market has soared to historic heights in recent years. For many, that’s great news: it’s a sign that the economy and their retirement accounts are doing really well. For Jan Eeckhout, however, the booming stock market is a sign that there’s something deeply wrong with the economy.

Sure, the economist says, he has a retirement account with stocks, and he personally benefits from the ongoing bonanza on stock exchanges. But the rocket ride of the stock market is powered by the exploding profits of increasingly powerful corporations. Their increasingly ridiculous profits, he says, are eating the income of the vast bulk of workers and hurting the overall economy. That notion is the central thesis of his forthcoming book, The Profit Paradox: How Thriving Firms Threaten the Future of Work.

Understanding the Rise in US Long-Term Rates

By Okeowo EbenezerPosted on Posted in Africa & World EconomyTagged , , , , , , No Comments on Understanding the Rise in US Long-Term Rates

The rise in long-term US interest rates has become a focus of global macro-financial concerns. The nominal yield on the benchmark 10-year Treasury has increased about 70 basis points since the beginning of the year. This reflects in part an improving US economic outlook amid strong fiscal support and the accelerating recovery from the COVID-19 crisis. So an increase would be expected. But other factors like investors’ concerns about the fiscal position and uncertainty about the economic and policy outlook may also be playing a role and help explain the rapid increase early in the year.

Nigeria: A Frail Giant?

By Fawaz AyobamiPosted on Posted in EconomyTagged , , , , , , , , , , No Comments on Nigeria: A Frail Giant?

Since President Muhammadu Buhari’s re-election in 2019, the country has faced a myriad of social and economic challenges. Inflation had surged from 11.40% in May 2019 to 17.33% last month; the Naira has been devalued three times, losing 33% of its value, insecurity has increased, and the general investment climate has waned. All these have happened while Nigerians have not seen any meaningful increase in their economic welfare: the country slumped into a second recession in five years. Many states have found it challenging to implement the new minimum wage signed into law in 2019. We also note that even if all the states had implemented the new minimum wage, the total number of civil servants to the entire labour force is considerably low. To sum it, you would still be worse off if you hold 2X the same Naira note you had in 2010 today.

The Relationship between Wealth Management and Financial Instruments

By David ShaibuPosted on Posted in Business & FinanceTagged , , , , , No Comments on The Relationship between Wealth Management and Financial Instruments

Wealth management centres on multiplying the financial resources of individuals and institutional investors. The process of multiplying wealth is defined by the investment finesse of the wealth manager. In turn, the finesse of the wealth manager will usually be influenced by their ability to spot out suitable financial instruments and the diversification of the wealth […]

Towards a Unified Foreign Exchange Rate System in Nigeria

By Sheriffdeen AdeotiPosted on Posted in EconomyTagged , , , , , , No Comments on Towards a Unified Foreign Exchange Rate System in Nigeria

In a bid to increase access to Forex, the CBN created the I&E FX (Investors and Exporters Forex Window) in 2017 for importers in order to ease the pressure faced by the businessmen in the foreign exchange market. However, there still have been disparities among the CBN official rate, I&E rate (also known as NAFEX) and the parallel market rate.

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