The Stock Market is Still Going Down…. What to do Next?

For several weeks now, I saw the Philippine Stock Market on a downward spiral. Though there were a few trading days when I see the market make a rebound, I see it as an opportunity for bargain hunters to buy shares of great companies at a much cheaper price. After bargain hunting, shares plummet once again on the following days.

Others view the current downtrend in the Philippine Stock Market as political. However, based on the global news, it seems to boil down to global economy. The impending increase in the federal tax rates is being anticipated with bated breath.

To long term investors, crisis like this is a great opportunities to accumulate shares since the prices are cheap. This is the time to be greedy since a lot has been so fearful. Fearful because some entered the market when it is going up. For those who waited on the sideline when the market is up, I imagine that they are now like kids buying candies of different variants from candy store. There are lots of cheap companies left and right.

One piece of advise though my friends, always make sure that you buy shares of great companies only. You must invest your hard money on companies which will be around for the next 10, 20 years. Do not put in your hard earned money on penny stocks. Later on, you will become penniless.

Invest wisely. We invest because we think about the future. Live in the present but always plan for the future.

Have a nice day!!! 🙂

Advertisements

The Stock Market is Going Down….Again

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.

My Mutual Fund Investing Experience…so far

I started out my mutual fund investing sometime 2008.  And I admit I started out on the wrong foot. Why? Because I have no idea what mutual fund is all about.  As in zero knowledge. I’m not even keen of doing investment during that time (everything’s different now though.. :)).

It so happen that a former boss invited me to a seminar regarding investments. That’s the first time I’ve heard of mutual fund. I was expecting something about stocks and I was introduced to this. You can imagine how confused I am during that time.  Talking about financial ignorance :(. So I shelled out P5000.00, opened an account from the top mutual fund company, and bought shares at P10.7/share and I am now in the world of investments.

I’ve made foolish mistakes after that transaction and would rather forget everything about it :). There were lessons learned after that.

Fast forward, I am now again an active mutual fund investor. I decided to invest in Philequity as a personal choice, based on its track record. Initially, there was a little inconvenience when it comes to mutual fund transactions, everything is done manually. Filling out forms, going to the bank to deposit funds, scanning the deposit slip and investment form, etc. For a guy who has a regular day job, I don’t enjoy such activities.

Fortunately, one of the top online stockbrokers in the Philippines, COL Financial Inc., introduced the COL Fund Source.

                        col-financial-logo-new

                        col-fund-source

A COL Fund Source is like a fund supermarket where investors can simply select every financial instruments which suits their investment appetite.  And the best thing about this is, everything is done online.  Just what I’m wishing for. 🙂 With just a simple click everyone can now have a mutual fund account.  But you have to open an online account at COL to enjoy these benefits. 🙂

One of the good thing about mutual fund investing is that in a volatile market, you are somehow protected from big losses because of diversification.  A mutual fund is the best way to do diversification on a minimal cost since the fund manager allocates the funds to different industry sector.  And your investment can buy shares up to the last centavo as compared to individual stocks which has a board lot. I’ll have a separate sharing regarding my personal direct stocks investment on future posts. 🙂

So there, as of this time, despite of the recent consolidation or correction, my fund is still doing good. It’s still in the green. Reason is I was able to purchase shares when it was still cheaper last April of May 2016. My personal strategy is to buy additional shares during market dips.

Hope you can get something positive out of this sharing.  If you have clarifications, please feel free to comment.

Thanks a lot for viewing and have a nice day. 🙂 🙂 🙂

A Truly Rich Club Member Anew

Finally, after weeks of coming up with a decision, I decided to rejoin the Truly Rich Club. Yup, you read it right.  I rejoined the club.  I actually joined the club a couple of years ago. I joined twice and I quit twice.  Guess I’m not that ready to be a responsible club member during those times.  But now, there’s no turning back.  I got to do it right this time.  I don’t want to be missing out on the great opportunities of being a member of this club.

TRCFor those who are asking what the Truly Rich Club is, as taken from its official website, it is a private group of individuals who are serious in changing their beliefs and thinking to gain the abundance mentality they need to change their lives forever.  This would not be possible without the guidance of its well loved founder, Bro. Bo Sanchez

My former boss actually introduced me to this man.  From then on, I became interested with his works.  I bought some of his books especially those which promotes financial literacy and inspirational works.

Now going back to the club, there are a lot of changes.  There are still the all time favorites Stocks Update and Wealth Strategies but on how the website looks.  It became more informative.  The Strategic Averaging Method (SAM) table is being updated real time.  I became inspired once again to make my investments work double time this time around. No more dilly dallying.  I’m not getting any younger. 🙂

There are additional blessings for the members.  One of those is the 100K Term Life Insurance.  Members can avail of this benefit if they are already a member of the club for one (1) or have fully paid the one (1) year membership.  For those who can afford, I recommend paying for the one (1) year membership in full since you will be saving 20% of the full year membership if you really want to avail of the term life insurance.  For those who are interested, you may join here.

There is a membership fee.  But come to think of it, Bro. Bo supports a lot of ministries.  I just think of it as a form of tithing.  Its a great feeling if we can give with all our heart.

Well I think that’s it for now regarding my Truly Rich Club membership.  I am looking forward making the most out of this experience.

And as Bro. Bo used to say, “May Your Dreams Come True”. 🙂

My First Missed Opportunity in Mutual Funds

mutual fundBack in 2008, I was introduced by my former boss into mutual funds.  That was the first time I’ve heard of such a thing.  Before that, he told me that he will share something about investment. The first thing that came into my mind was the stock market.  I was surprised when he told me things about mutual funds.  My first question was, “What is that?”

I was introduced into something which was very new to me.  I was not prepared for that.  I don’t even know about Philequity.  Which at that time, or even up to now, is the #1 Mutual Fund company in the Philippines.

So since I really wanted to try something new during that time, I opened up an account. I was told to open up an equity fund.  Whatever it is, I listened to him knowing fully well that as my former boss, he will never do such a foolish thing to me. I later learned that an equity fund invest 90% of the fund in equities and 10% in government securities. I will have a separate post regarding mutual funds and its different classification.

 Moving on,  I shelled out P5,000.00 as the minimum initial investment.  If I remember it right, the NAVPS of the fund during that time was 10.7.  After opening the account, I never tried to add up to my investment.  As the price went down to 7.5, I was discouraged.  I’ve seen my money went down from the initial fund value.  As it recovered back and reached P20/share, I decided to sell all my shares.  Somehow, I was able to double my money.  Doubling my 5,000.00 to up to 10,000.00 doesn’t even made me excited to keep going.  Instead, I kept on living from paycheck to paycheck.  My financial situation was in total disarray.

Fast forward, after reading the Simplify book series of Bro. Bo Sanchez, that’s when I realized that I am a fool.  I allowed an opportunity of a lifetime in the form of Philequity, to slip through my hands.  Now, the NAVPS of that same fund is 34.6.  The NAVPS trend makes me say tsk, tsk, tsk. :-(.  See the uptrend from 2008 to 2015? 

graph

Reading inspirational books made me decide that I must shape up or else my future will be compromised. I know it’s somehow late in getting my hands wet in the world of investments, but I am sure that it is not too late.