The performance of the stock market is expected to soar this year with interest rates likely to go up to the benefit of investors, Executive Director of Databank Financial Services, Rev. Daniel Ogbamey Tettey has said.
Finding the most profitable places to invest is one of the most challenging tasks for most retail investors and businesses people and so most of them turn to experts for advice.
With the increasing rates of treasury bills on the capital market, there are indications that investors could be turning there.
�Normally, we advise investors to take a look at their risk profile so for someone who can deal with risks, I will recommend the stock market any day, anytime. I expect the performance of the market to be better than last year,� said Rev Tetteh in an interview =.
�We expect interest rates to remain high so the money market or fixed income instruments will still offer attractive returns,� he said.
According to him, investors who can deal with risks could look at the stock market �but if you want the best of both, then I will advise diversification.�
Put some of your money in the stock market and some in the money market or look for a balanced mutual fund where you can invest your money and get the best of returns.
Government maintains that a vibrant capital market will help close the infrastructure gap, create wealth, unleash the creative potential of the people, inject efficiencies in the operation of public utilities and enterprises, and turn ideas into marketable products of global dimensions.
�The capital market as part of the financial system is therefore critical for our economic development process, says Deputy Minister for Finance, Mrs Mona Quartey.
According to experts on equity, the Stock Exchange remains the most appropriate source of capital and a trading platform for all businesses seeking to raise long term financing at a relatively lower cost for their operations.
�We need to rely on this alternative financing route to complement the financing from the banking system. In this way, the private sector will be able to play its role in the development process more meaningfully,� one expert observed.
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