The Dow,  a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States, was inaugurated in 1885. It took 72 years to hit 1,000 points in 1972. But from 20,000 to 30,000 points, it was under 4 years. 

Simply, there is a massive acceleration on wealth creation at an unprecedented level in this age where Amazon, Apple, Google’s Alphabet and Microsoft have touched the face of T-alpha. Yes, $1 trillion market cap and more in multiples. 

The T-alpha is unified by one thing: technology, the goddess of productivity. Sure, there is a concern that the wealth may not be distributed fairly and equally, but that does not mean the goddess did not create or accelerate wealth creation.

Note this: the future is one of abundance. It is largely irrelevant how pessimistic you are. Simply, Dow will get to 40,000 and keep rising because the new ideas of today will seed the growths of the future, and provided that new ideas are being created, abundance will rule the future

The bulls are in the street: do not run.

In our Live discussion on markets in our program,  a member asked a largely hypothetical question: “does Nigeria have any risk of negative interest rates?” Negative interest rate happens when you receive less than money you have put in a financial investment. For example, if you put N1,000 and there is a negative interest of 1%, you will receive N990 at the end of the year. While it is not common in Africa, some EU countries have used negative interest rates to encourage people to spend, and not to save! Saving means you lose money.

Today, Nigeria has a new record, we recorded a negative interest rate on treasury bills (TB): “The Nigerian Interbank Treasury Bills True Yield went negative [last week] with a 90-day treasury bill trading for -0.0109%. … Interest rates on treasury bills sold on the primary market sold for as low as 0.5% for a 9 months tenor as investors scampered or yields in the low yield market.” The current rate is here.

Indeed a lot of things are happening. Even fixed deposits do not really move the needle. The old savings account strategy is totally unhelpful since everything has been eaten up by inflation. These issues have been well discussed in a course on Capital Markets where our Faculty expounded on this redesign. But he did that during the period when TB was a fair play; he is updating the courseware to capture this evolving scenario of negative interest rates.

What is happening here is consequential. Just a few months ago when the TB interest rate was more than 13%, we agitated for the government to work to push it low. Without that policy, lending to SMEs was impossible as lenders through the high paying TB had a largely risk-free instrument to invest at double digit yield. In other words, why risk on anything when you can bank on the Nigerian nation via TB at 13%? Government worked and reduced the rates, opening up a fairly improved lending climate in the nation. A+ for the Central Bank of Nigeria on that execution; it was its finest policy implementation.

Treasury Bills are short-term debt instruments issued by the Federal Government through the Central Bank to provide short-term funding for the government. Put simply, anytime you participate in T-Bills primary auction, you are borrowing government money for a fixed and certain return.

The return on T-Bills is so sweet, yourself and banks would rather invest in T-Bills rather than start a business or lend money to SMEs. In Nigeria, anytime you borrow government money, you starve an Entrepreneur the needed funds to start or grow a business, you deplete the real sector. It’s not your fault neither is it the Banks’ fault, Government asked you for money in exchange for fixed returns free from risk and you gladly obliged as a logical being.

However, burdened with the rising cost of debts and unimpressive economic performances, the Government is on a mission to reduce her debts and encourage lending to the real sector. How can Government discourage Investors and Banks from lending her money? One of such ways is to reduce T-Bill rates.

But negative rate? Where do we go from here?

The Trump administration has approved the start of the process for the formal transition of power to president-elect Joe Biden. The administrator of General Services Administration (GSA), Emily Murphy, sent a letter to Biden on Monday afternoon, informing him that the administration is ready to begin the formal transition.

In the letter obtained by CNN, Murphy said the delay in the formal transition process has been as a result of legal actions following the result of the election.

“As the administrator of the U.S. General Services Administration, I have the ability under the under the presidential Transition Act 1963, as amended, to make certain post-election resources and services available to assist in the event of a presidential transition.

“I take this role seriously and because of recent developments involving legal challenges and certifications of election results, am transmitting this letter today to make those resources available to you,” she said.

The letter has put an end to the Trump administration’s denial of the election result, giving Biden access to the fund he needs to prepare for his journey to the White House.

This development means the GSA will make $6,300,000 available to Biden to execute the transition, and additional $1,000,000 to provide appointee orientation sessions and a transition directory.

Following Trump’s inability to acknowledge Biden as the winner two weeks after the presidential election, which thus resulted in GSA’s withholding of the transition fund, Biden began raising funds alternatively. Last week, Biden’s transition team sent a grassroots fundraising plea to its supporters asking for donations to reach more than the targeted $10 million for transition.

The GSA’s letter also means the Biden team will now have access to federal agencies and vital information that the Trump administration has been withholding. Biden had decried the delay, saying it would hinder the fight against coronavirus that is currently ravaging the United States.

Yohannes Abraham, executive director of Biden’s transition said the start of the transition was a needed step in tackling many of the problems facing America, especially COVID-19.

“This final decision is a definitive administrative action to formally begin the transition process with federal agencies,” she said. “In the days ahead, transition officials will begin meeting with federal officials to discuss the pandemic response, have a full accounting of our national security interests and gain complete understanding of the Trump administration’s efforts to hollow out government agencies.”

Murphy had been under intense pressure from Biden and democrats to sign off on Biden/Harris victory, but had allowed the matter to drag on for weeks, suggesting allegiance to Trump based on his conspiracy theories.

But in her letter, she said her decision to delay the ascertainment of Biden’ victory has been independent.

“Please know that I came to my decision independently, based on the law and available facts. I was never directly or indirectly pressured by any Executive Branch official – including those who work at the White House or GSA – with regard to the substance or timing of my decision. To be clear, I did not receive any direction to delay my determination,” she said.

Trump is yet to make a clear concession, though he thanked Murphy in a tweet for her work, after the letter became public, which affirms he approves the decision of the GSA. However, he said the fight to reclaim his stolen election will continue, and implied that he approves of the GSA’s ascertainment because he doesn’t want Murphy to continue to be harassed.

“I want to thank Emily Murphy at GSA for her steadfast dedication and loyalty to our Country. She has been harassed, threatened, and abused – and I do not want to see this happen to her, her family, or employees of GSA,” he said. “Our case STRONGLY continues, we will keep up the good fight, and I believe we will prevail.”

While restating his determination to pursue legal proceedings against what he has described as “rigged election”, Trump said the GSA must do what has to be done in the interest of the country.

“Nevertheless, in the best interest of our Country, I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do same,” he tweeted.

Trump’s determination to continue the push to overturn the result of the presidential election has been described by his advisers as “a veiled attempt to justify continued fundraising solicitations.” Trump campaign has raised millions of dollars for lawsuits, but has lost more than 95% of all the lawsuits it filed pertaining to the election result.