Recent Trends in Portfolio Flows– Should Local Investors be Concerned?
Data from the Central Securities Depository (CSD) indicated a strong resumption of capital flows into the capital markets throughout the fourth quarter of 2020 (see Fig. 1 below). Some analysts attributed the strong capital inflows to increased optimism about Ghana’s economic growth, amid easing trade tensions between the United States and China. Some analysts have […]
Asset Allocation: What is It and Why is it Important?
Introduction Asset allocation refers to the proportions of funds that an investor invests in various asset classes (such as cash, bonds and stocks), sectors and countries. An investor’s portfolio should also allocate investments to various sectors such as energy, financials, ICT, healthcare, communication services, industrials, utilities, real estate etc. It is important to diversify (invest […]
Financial Markets, Financial Institutions and Investments (Part II)
Introduction Following from our earlier discussions in part I which centred on financial markets, financial institutions and investments, where we examined the nature of financial markets, money and stylised data on mobile money in Ghana, we proceed in Part II to look at financial instruments and financial institutions which are important players in the financial […]
Asset Allocation: Factors that Affect Asset Allocation
Introduction In our previous article, we explained what asset allocation was and why it is important. We learnt that asset allocation represents how an investor distributes their wealth across various asset classes, sectors and countries. We also learnt that asset allocation is a key factor that influences the risk and return on a portfolio. In […]
Financial Markets, Financial Institutions and Investments (Part I)
Introduction In this article and the couple of series that follow, we examine financial markets, financial institutions and investments. These are important concepts whose understanding provide immense aid to individuals and institutions interested in knowing what to do with their money and how they can create and maximise their wealth. In this first part of […]
Central bank independence: Why does It matter?
In our earlier article on the concept of central bank independence, we explained what it was and how it is measured. In this article, we explore why central bank independence matters. We also explore arguments put forth against central bank independence. Central Bank Independence is important because researchers have found that the more independent a […]
Are you building without a foundation?
Introduction In this article, I discuss the importance of having an emergency fund as part of the investors approach to achieving financial independence. I have conducted several training on retirement planning for a number of organizations. I have also assisted many individuals in designing their investment portfolios. In my interaction with these investors, a key […]
COVID 19 – Managing your investments
There is no doubt that the novel coronavirus, COVID-19 has taken a toll on the world economy and the financial markets. The global pandemic has placed portfolios in unfavourable positions as markets take a nosedive. Though the markets have experienced similar crisis in the past; the 2002 tech bubble burst, the 2008 housing bubble burst […]
The concept of central bank independence
On 1st August 1957, Ghana’s central bank, the Bank of Ghana, opened its doors for operations following its establishment on 4th March 1957 under the Bank of Ghana Ordinance No. 34, 1957. Prior to that, the West African Currency Board (WACB) had been established by the British in 1912 to issue and redeem currencies for […]
Banks in Ghana Rankings for Q3’2020
Overview The bank rankings were based on the financial statements released by the banks for the first nine (9) months of 2020. The rankings focused on twenty-one (21) banks out of the 23 commercial banks in Ghana, as the financials of OmniBSIC and Prudential were unavailable at the time of the analysis. The rankings emanated […]
