DailyrecordNg …Nigeria's hottest news blog
Related Articles
The Head, Equities and Alternative Assets Solutions of FBN Quest, Laura Fisayo-Kolawole, has said that the best investment safety in the wake of global economic realities is holding US dollar cash.
Fisayo-Kolawole said this on Wednesday in response to stock volatility last week after the projected US recession.
Last week, the global stocks witnessed massive sell-offs.
On Monday the Dow Jones Industrial Average shed nearly 1,034 points, or 2.6 per cent, and closed at 38,703.27. The S&P 500 lost 3.0 per cent, while the tech-heavy Nasdaq composite index lost 3.4 percent
She said investors took the sell-offs ‘too far’ adding that the only real data that has been negative for the US is the unemployment data.
Fisayo-Kolawole said, “From a risk perspective when you think about the safe haven assets, people often think of assets like gold, they talk about currencies in particular the dollar the Yuan, Swiss Franc.
“They talk about government debt particularly US Treasuries as a safe haven, you can even talk about defensive equities as another safe haven and you can think about crypto.”
The investment expert said a lot of assets classes have been volatile.
“If I was going to rank especially in a market like ours, something like crypto is probably a more risk asset. I think government bonds have proven to be quite volatile because they are linked with a lot of the US FED actions and Bank of Japan actions as we have seen recently,” she said.
According to her, defensive equities are also volatile considering the recent selloffs.
The FBN Quest analyst said, “I would say that looking historically, the places that you would find safe haven is probably in cash and currencies, I would have said the Yuan because it has been strong in recent years but more recently, with the Bank of Japan focused on trying to reflate the economy, the Yuan has sort of suffered.
“So, I would say the US dollars may be to an extent the Swiss Franc.”
