by Patrick Ogungbola
MD/CEO, BLUEHEDGE REALTORS
We welcome you to the month of August!
Everything seems so fast these days, sometimes I wonder if a day is now less than 24 hours. Our last article titled: “Never Ever Give Up, Never” was sent on July 1st; and it seemed just like yesterday.
We have been receiving several commendations regarding our monthly articles from our esteemed clients; we are pleased because it is obvious that we are making some impacts in our own small way. Thank you for your good comments.
This is August, the eight month of the year, the last month before the ‘EMBER’ months. May you receive your ‘AUGUST’ visitor this month of August.
Now, jokes apart, for people who are very discerning like the biblical sons of Issachar (1 Chronicles 12:32), they will have an understanding of the time we are in. If truth must be told, Nigeria is in a critical period economically. The words flying around are ‘Nigeria is broke, there is no money in the economy, the economy is no longer buoyant, there is shortage of fund, the stock market is crashing, CBN orders banks to publish the names of debtors, etc.’
The above statements are true, the effects are already telling on the economy. Interestingly however, this is the kind of period savvy investors have been waiting for because of potential opportunities that lies in this period. The business people/ investors will be familiar with the term ‘economic cycle’ which is simply fluctuations in the economic output in a country or countries characterized by phases known as – Recession, Depression, Recovery, and Expansion (Boom).
Discerning investors always wait and position themselves for periods of recession and depression when there is no much money in circulation, when all forms of investments (stock, real estate, money market investment, etc.) don’t seem attractive, when there seems to be no incentive to invest; when novice investors will sell their current investments at a loss. Wise, discerning, savvy investors will be looking around for good, cheap deals (investments to key in) at these periods and liquidate these investments at the periods of recovery/ expansion when they would have made huge profit. Novice investors will buy off the investments from the savvy investors by this time.
The great investor, Warren Buffet, once said that ‘Be fearful when others are greedy, and greedy when others are fearful’. Almost everyone is fearful at this period, hence you have a right to be greedy (this type of greed is not sinful, it’s investment greed for a better return when the economy is buoyant again).
This is surely a time to sow (when the economy is down), so that you can reap/ harvest when there is economic expansion. Everything in life is cyclical, the understanding of various cycle and the decision to take at those times is a solution to all life struggle. If a farmer does not know when to sow, how can he harvest in the first place.
Please don’t repeat the mistake made during the period of the stock market craze. Not everyone lost money in the stock market then, discerning investors had opted out when everyone was rushing in (remember Warren Buffet’s quote above). The caveat here is that you should ensure to carry out thorough due diligence, and also make use of expert advice before embarking on any form of investment. The reason being that you can still lose money even in periods of economic recession/ depression if you misinvest (investing in the wrong instrument, commodity, sector, etc).
We shall stop here, but remember, we at BLUEHEDGE REALTORS are very passionate about your investments and general well being. We want you to always remember that when it comes to your real estate investment, we are always here to give you the very best service you can never get elsewhere.
We wish you the very best in the month of August.
Very truly yours,
BLUEHEDGE REALTORS
