This archive report was first published on 30 June 2021.
5 Things You Can Invest in Right Now and Make Good Money ¶
As the COVID-19 pandemic continues to wreak havoc on global markets, many investors are left wondering what to do with their money. However, renowned billionaire investor Warren Buffett has long advised that the best time to invest is when everyone is afraid to buy. With this in mind, we spoke with financial market experts to find out what investments are worth considering right now.
Published on June 30, 2021, at 4:54 PM EAT, this article provides valuable insights into the current investment landscape.
Stocks: A Risky but Rewarding Option
When it comes to stocks, the old adage 'buy low, sell high' still applies. However, with the current market volatility, it's essential to choose the right counter to avoid losses. Christine Kihara, a financial markets analyst at Abojani Investments, recommends Safaricom as a top pick in the market. 'Safaricom is the finest jewel in the market, with its technology-driven business model and peak consumption of its services,' she says.
Michael David, a financial and investment coach at MoneySense, also suggests Kenya Power as a stock with a higher value than its current price. 'Although Kenya Power has been getting bad publicity lately, its value is much higher than what the price reflects,' he says.
Government Bonds: A Risk-Free Option
For those looking for a risk-free investment, government bonds are an excellent option. According to David, government bonds offer a sustainable income stream, with a coupon rate of 13 per cent. 'If you have Sh. 5 million in your bank account, and you invest it in government bonds, you will be getting monthly income of Sh. 54,000 without taxes,' he says.
Ms. Kihara also suggests money market funds and treasury bills as viable alternatives to bonds for short-term investors. 'The good thing about money market fund is that it is almost the same as saving but with higher interest rates,' she says.
Distress Properties: A Lucrative Opportunity
Reuben Kimani, the chief executive officer at real estate firm Username, notes that there are prime distress properties available at unrealistically low prices. 'These huge price drops always occur whenever there is a major recession or major economic disruption,' he says. 'They favour anyone with liquidity.'
Agribusiness and FMCGs: A Shorter Cycle of Cash Conversion
Eric Munywoki, a director at Goodson Capital, recommends investing in agribusiness and fast-moving consumer goods (FMCGs) due to their shorter cycle of cash conversion. 'Even in the presence of a pandemic and low liquidity in the population, agricultural products and FCMGs will remain in demand,' he says.
Digital Innovations: The Future of Business
As the world continues to adapt to the new normal, digital innovations are becoming increasingly important. Munywoki suggests investing in fintech, digital health, and digital education. 'Businesses that provide technological solutions like internet provision and voice will continue to do well because technology is inseparable from today's daily living,' he says.
