I just learned today that the Dow Jones fell by 394 points at closing last Sept 9, 2016. Most of the time, the DOW serves as a barometer on how the Asian markets will perform, specifically the Philippine market which is represented by the PSEi.
The PSEi already closed out on a losing note last Sept 9, 2016 by 85 points. And with the Dow losing out big time, I won’t be surprised that the PSEi will follow suit especially that majority are foreign investors. I wish that the time will come that Filipino investors would dominate the Philippine Stock Exchange.
I mentioned in my previous that I have rejoined the Truly Rich Club. One of the main objective of the club is to teach financial education to Filipinos. The club would like to emphasize that investing in the stock market is not only for the rich. Anyone can do it as long as we obtain proper financial education and guidance.
The club has a shortlist of recommended stocks that the members could buy on a regular basis. That is regardless if the market is up or down. It doesn’t really matter. The club members celebrate when the market is down since we can buy shares of great companies at cheaper prices. We are being taught to buy on a regular or monthly basis so we can ride the volatility of the market. We are also being trained to act as Investors and not as Traders.
The role of the club now is crucial as some investors, especially the newbies tends to get carried away by their emotions. We are being reminded of the famous mantra by Warren Buffett that “We must be fearful when the others are greedy, and greedy when the others are fearful”. Long term investors buy when there are a lot of selling going on and are on standby when stocks are getting overbought.
I used to be carried away by emotions when it comes to investments, but now, with the proper guidance and education, I know for sure that I won’t be on the wrong side of the fence ever again and I won’t miss out on greater opportunities.