Home Latest Insights | News The Revelation on Investments – Alpha Happens Even During Global Tensions

The Revelation on Investments – Alpha Happens Even During Global Tensions

The Revelation on Investments – Alpha Happens Even During Global Tensions
Flags of member nations flying at United Nations Headquarters.

It turns out to be an illusion: the stock market does well when the world seems to be at peace. Check the major stock markets in the world, they’re hitting new highs. Good People, we can make an argument that during crises (not full blown wars), the world goes Keynesian where we spend, spend and spend. And as that happens, companies make tons of money.

 As the Dow Jones Industrial Average hits the record-high 40,000 benchmark, stakeholders are experiencing “almost picture-perfect” conditions in other investment options, too, The Wall Street Journal reports. It notes that tech stocks, cryptocurrencies and gold are ticking up, and even lower-risk investments such as certificates of deposits are hitting 5% yields. But there are longer-term headwinds, including the government’s looming $1.1 trillion payment of extra interest on its debt over the next decade. JPMorgan Chase CEO Jamie Dimon is also skeptical, saying there’s “a lot of happy talk,” while inflationary forces remain unpredictable. 

So, provided it is all tension, no actual bullets and grenades, markets are fine. The only downside from the money making component is that inflation will go up since all these monies will end up on the streets and purses of people!

 Here is the message: never postpone an opportunity. Yes, “uwa bu ahia” [the world is a marketplace] and you can trade at peace and war time, notes the Igbo Nation! Indeed, never think the market will close.

Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.

Tekedia AI in Business Masterclass opens registrations here.

Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.


---

Register for Tekedia Mini-MBA (Feb 10 - May 3, 2025), and join Prof Ndubuisi Ekekwe and our global faculty; click here.

No posts to display

Post Comment

Please enter your comment!
Please enter your name here