Emeka Ucheaga Advisory

Dear Speculators, We all need to buy some important assets during our lifetime. Sometimes when the need arises, we are without sufficient cash and we need to borrow to acquire such assets for example cars, gadgets, etc. Quantum leaps in technology have continued to make assets like phones, computers, television, internet data etc cheaper and better. As such it will be somewhat unwise to purchase an asset which will immediately start losing value by paying in installments or with a loan. In essence, you will be paying more for an asset which is losing value. You must note that when we purchase certain items like vehicles with a loan for personal use, it produces no returns for the owner but only yields personal satisfaction. These loans bear interest rates and since you will be paying more for the depreciable asset with borrowed capital, it simply means you are spending more to get the same satisfaction. This utility will fall gradually as the asset wears over time. Capital exp

Dear Speculators, Many a times individuals believe that the only way to build wealth is to own a big business or to have a high paying job. This is not always true as even a man so far back on the earnings tree can build his wealth and be richer than his peers. Some big businesses like Twitter, Whatsapp and The New York Times are actually multi-million dollar loss making firms in America. Sometimes we read the news and see multi-millionaire celebrities like Kanye West and 50 cent become heavily swamped in debts. So even those who are rich don't know how to stay rich. I want to teach you all an easy risk free formula to becoming rich and conserving that wealth. Warren Buffet once said the only way to build wealth is to live beyond one's means. He also advised that we save before spending instead of saving what is left after spending. That way you can control yourself from binge spending. Savings is very important. As we grow older, we move from being net spender

Dear Speculators, Everyday we are bombarded by the latest financial news, the closing share prices, the top gainers and losers, the volume traded and the market capitalization. Most of the news sound like gibberish to those who don't understand what the numbers mean and it sometimes causes panic to those who know how to read the market reports. It is for this reason that I wish to take you gradually through digesting the news and acting on information. Share prices simply reflect the equilibrium value of a financial asset as a result of the forces of demand and supply and may not reflect the true or intrinsic value of that asset at a particular point in time. The share price may go up or down depending on the demand and supply of that particular stock in the market. Any change in share prices is triggered by either a large demand or large supply of that stock in the market. The biggest influence on prices is the sentiments of the institutional investors and pension fund

Dear Speculators, Nigeria is one of the largest producers of oil in the world, that's a fact. NNPC estimates our oil reserves to be about 28 billion barrels, that's another fact. Our 2016 budget indicates daily oil production will reach 2.2million per day, which will be about 700 million barrels per year, representing 2.5% of our total oil reserves, that's a statistical fact. Oil production at this level will completely empty our oil wells within 30-40 years, that's an unspoken fact! As oil wells continue to dry out all over the world, it has coincided with reckless drilling and the current oil glut we are experiencing.  Oil prices have plummeted since the oil war began in mid-2014 after oil prices reached an all-time high. Demand has been growing marginally with population growth but excess supply has crashed oil prices below its cost of upstream production. The oil war will end, possibly this year but prices will rise slowly as the world battles to get rid of

Dear Speculators, Tourism is a delightful experience. We get to experience new culture, taste different kinds of food, enjoy the tranquility of the region, visit the museums, take pictures of the beautiful city and most importantly, GO SHOPPING. I'm also a "shopaholic" but what is on my shopping list is uniquely different from most individuals who take vacations in America and Europe. America and Europe boast developed economies with efficient and growing financial markets. The S&P 500 in America, FTSE 100 in UK and Stoxx 600 in Europe have all averaged an annual growth rate in excess of 5% in the last 30 years despite the dot-com crash and two economic recessions. An index fund should be on everyone's wish-list when next you find yourself abroad. An index fund is simply a mutual fund investment which allows you to properly diversify your portfolio in a particular stock market by buying an index in order to match the market performance instead of attempt