Weekly Economic Update (Sept 16th – Sept 20th)

• The Federal Reserve's decision to cut the federal funds rate by 50 basis points, marking its first reduction since March 2020. This move, influenced by easing inflation and a weakening labor market, is expected to have significant implications for emerging markets, including Nigeria.
• An overview of the oil market, which has seen prices rise due to the Fed’s rate cut and geopolitical tensions, alongside an outlook on potential demand changes.
• A snapshot of the forex market, highlighting the stability of the Naira amid increased forex turnover.
• Insights into the money market, which continues to experience tight liquidity conditions.
• Activity in the fixed-income market, showcasing both bond and treasury bill performance, with expectations for upcoming auctions influencing market sentiment.
• A review of the stock market, which exhibited positive sentiment, with notable gains in key stocks.

The report also includes our outlook on these markets, providing context for what investors might expect in the coming weeks.

Investment Corner – “Don’t put all your eggs in one basket”

The age-old saying "Don’t put all your eggs in one basket" holds, especially in investing. Concentrating all your investments in a single asset class increases your risk exposure. If that one investment fails, you could lose everything. Diversification helps mitigate this risk by spreading your investments across different asset classes. This way, the poor performance of one investment can be balanced by gains in others, ultimately protecting your portfolio and ensuring more stable long-term growth. Diversification is key to managing risk and maximizing returns. Below are different investment classes you could consider and the associated level of risk.

A financial expert can guide you through your investment journey. At GDL, your growth is our priority. If you have any questions or need assistance with your investment strategy, please don’t hesitate to contact us.

Read full report here: https://gdl.com.ng/blog/weekly-economic-update-(sept-16th-%E2%80%93-sept-20th)