Thinking independently was a large part of intelligent investor behavior in 2021 as the NGX All Shares Index (ASI) began to shake off the adverse consequences of a COVID-19-induced market meltdown. As global financial markets felt the pinch of disrupted supply chain networks, slow retail demand recovery and rising domestic price levels, investors became increasingly concerned about equity returns and probable fiscal tightness on the back of a global liquidity glut.

With Western nations witnessing historic rises in domestic inflation rates and governments deciding to turn on the fiscal screws, emerging markets like Nigeria saw modest responses. The ASI Index yield fell from -5.32% in January 2021 to -6.16% in February before a modest reversal saw the Index declining by -190% in March. The NGX market Index yield went back up at the beginning of Q2 2021 with a yield of +2.02% before crumbling to -3.51% in May and -1.38% in June.

For the rest of 2021, market yields were positive until the Index slumped again in December. Investors saw yields dip five times in 2021, but they also saw market returns positive for seven months of the year.