The global finance crash, bankrupt banks and a general economic downturn characterized most of 2008 and will go down in history as the year of crisis; many players are perturbed about the impact it will have on investors and their decisions regarding investments in 2009.

In an era of advanced technological initiatives and well-researched financial reports, one can almost think there is little room for collapse in all aspects of economics. As in the Enron case, investors have again witnessed a growing trend lacking prudence practices that once characterized corporate environs of the developed world.

More than ever, we cannot rely too much on our experts and commentators to provide us with flawless information and advice on our investments. We have to take an extra step to educate ourselves about these matters to propel ourselves into action so that we actually experiment out our decisions in financial matters.

It is important that investors invest more in educating ourselves on financial matters, spread out investments in various portfolios.  As the saying goes, it is easier to spend savings than save spending!  The most informed decision even in tough times as this would be to identify stable portfolios and develop a more avid savings culture.

A number of products exist in the market inform of unit trusts with various portfolios to include high yield and balanced investment funds. Although risky, we are advised bring good returns. A combination of these with Money funds and securities will give an enthusiastic investor good returns on investment over the long term.

The idea is that investing over the long term is the better option as compared to the short term. Not that there are no good short-term investments but these can easily be misleading as they might be confused with the “get rich quick schemes” which are on the increase in this day and era.

Real estate is still a very tempting investment option, with anticipated returns of close to 150% this industry ranked among the most profitable in the world; Uganda not excluded. With a revamped economy, active informed middle class, spendthrift lifestyle driven individuals and an industry only discovered recently still has very few players.

This remains a very inviting and profitable industry for one to stuck unused funds.

For the first time in a long time, we witnessed the capitalistic western world practice communism they so very much despised. In total disregard of all the principles and practices, they have advanced for centuries totally ignoring the laws of supply and demand.

Western governments all over the globe injected large sums of monies in the economies to save the collapse of major industry contributors in both the financial and motor industry.

Among the culprits were AIG, Layman and Brothers and most recently General Motors in the US market. Several European economies (Iceland, Germany and the UK) received cash injections from the IMF and the treasury to promote their integrity and stability amidst this widely unstable global economy. There was gloom everywhere spelt by financial commentators and experts, as our prophets of doom.

Back home, the result, reduced spending amidst high pricing resulting from opportunistic market players in response to this doom gospel. With global oil prices at their lowest in many years, Ugandan vendors have again taken to exploiting the Ugandan consumer by creating scarcity and increasing the prices of fuel products.

The proponents of free market economy went out of their way to save their economies; our government on the other hand continued to give a deaf ear to the out cries of the consumers in the interest of capitalism.

The custodians of our economy have advised us that we are safe. The financial troubles of the western economies shall not affect us! All the stakeholders would like to agree with that proposition. Nevertheless, is this sustainable without the input and intervention of our custodians? With high fuel prices, experts predict high prices for all domestic commodities in the New Year.

The result will be lower disposable incomes and reduced spending. Some experts comment Uganda’s tax regime commands the highest tax rates (18% VAT compared to Kenya’s 16%) in the region and compare our tax rates to some of the highest European regimes like the UK (17.5% VAT) and the Scandinavian countries. I guess it is no wonder that all the major stakeholders in the economy expect high government involvement and intervention in both the health sector and road sectors that are widely lacking.

It makes economic sense for one to scale their community engagement according to the market conditions. However, in a highly volatile market it is advisable to consider both the financial health and the overall goals and objectives before deciding on whether to upscale or reduce on community engagements. Good luck and happy New Year 2009