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!!! 🙂

Reconnecting

Last Saturday, our High School batch held our 25th Silver Anniversary Reunion. It seems like yesterday when we had our graduation march which signaled our entry into another phase of life. Our formative years molded us well enough to face the challenges of college life. We went our separate ways and its a great feeling seeing old faces once again after so many years.

Reconnecting with old friends reminds us that we should never forget to look back at our past. We don’t need to dwell on the past but its rewarding enough to reminisce good times with our childhood friends. We might have misunderstandings with some but all of it are part of growing up. Youth plays a major factor in times when we have misunderstandings with our peers.

The event became even more nostalgic with the presence of our beloved teachers who in one way or another, honed us to become the person we are now. Some became successful, some are average and some just ain’t fortunate enough to reach the pinnacle of success. The choices we make plays a major factor of success or failure in life.

I’m not that fond of attending gatherings like this but the chance of seeing old friends once again made me change my mind since opportunities like this is hard to come by. Yes, there is the social media where we see updates of what our friends are up to. But nothing can compare the feeling of seeing them all over again. Personally talking and laughing with them is something that social media cannot even replace.

For the others who decided not to attend the event, they have their reasons. But one thing’s for sure, they missed an event worth remembering.

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.

Being a Morning Person

A couple of years ago, I get excited as the weekend approaches. I used to get up very early on a Saturday morning to have my weekend run. Yes, I got hooked to running. I have two (2) 21Ks under my belt. Eventually I stopped running and looked for other ways of spending early Saturday mornings. I turned to biking. Just this morning, I had a great morning bike ride together with my wife.

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I just love having a physical activity in the early morning. I just love the stillness of the morning. It recharges me right away. It helps me in removing all the negative thoughts which lingers in my mind. It refreshes the soul. Seeing the sun rising from the East is such a wonderful sight for me.

I find happiness in things like this. It helps in reducing stress brought about by the complexities of life.

I may not be able to do early morning physical activities on weekend morning all the time but I make sure that I wake up early despite going to bed late. I can always power up my computer and write a blog on whatever topic I want.

Slowly, I am now developing the habit of writing on a regular basis which will further improve my writing skills. And the stillness of the morning will play a major factor for me to become the writer that I would like to be.

How to become a Saver from being a Spender

Once upon a time I was a Spender. I have yet to receive my salary but it is already consumed because of things that I wanted to buy. The sad thing about is, I bought items with the use of credit. I was not only a spender, I was also a debt magnet.

It crossed my mind that my financial life is going nowhere. I have no investments. I have no savings. Until one day, I decided to change my mindset. Instead of being a spender, I now wanted really bad to be a Saver. I was able to buy books on proper financial management and lifestyle simplification. I needed mentors, and it came in the form of books, audio books, internet articles, etc.

I was never the same after that. I’ve learned about the prosperity formula. I’ve never known, that for us to be able to prosper, we must follow the prosperity formula, which was the formula used by rich people.  And that it:

Income – Savings = Expenses

We must live on what was left after we deduct our savings from on our income. Before I used the poverty formula:

Income – Expenses = Savings

The problem about this formula is, most of the time, there was no savings at all. And there were times that instead of zero, it becomes negative, forcing us to incur debt.

It is recommended that we save at least 20% of our income and put it into something which would earn us interest.

Now, I am using the prosperity formula to help me boost my financial life so I can be financially free when the time comes that I already need to retire. I am excited when payday is already around the corner since I know that I can once again transfer funds from my payroll account to my savings account. Saving nowadays became more convenient because of online banking. With a few touch, we can easily transfer funds from one account to another.

But we should not just stop with just saving our hard earned money in the bank. We also need to grow our money exponentially. We cannot just rely on the 0.5% annual interest that our money earns from the bank. We need to beat inflation. And that can only with the use of investments. More on this.

Have a nice time. 🙂

Proper Use of Credit Cards

When it comes to paying purchases, there’s no question that credit card is the most convenient mode of payment since we don’t need to bring too much cash in our wallets.

But after using “plastic money”, what do we normally do once we get home? Do we pay the credit card company immediately? Or we wait for the billing statement and pay only the minimum and we allow the bank to charge us interest?

I am not trying to make myself clean when it comes to these kind of things because I was once hooked by the credit card mania.  After using the card senselessly, I just waited for the statement and just pay for the minimum amount. There came a time when I no longer know how to pay for it. I got into several loans just to pay for the credit card.  Talking about financial ignorance. I simply did not live within my means. Salary is being spent out even before receiving it. And that it due to the improper use of credit cards.

So after painstakingly developing the discipline, one by one I first paid credits with the highest interest rate.  Cut off cards, with “hidden charges”.

Please don’t get me wrong, credit card is not evil. It is actually a tool which if used properly may also bring in peace of mind. Personally, credit cards must only be used in emergency situations when we have no immediate available funds. It should not be used to fund our lifestyle.

Right now, I only maintain one credit card and sometimes use it for items such as grocery, clothing, medicines, car maintenance, etc. But I make sure that when I get home, I pay all of it via online banking.  Though there were times that I’m not capable of paying 100%, I make sure that I pay at least 90%. So by that, I maintain my credit at a minimum level.

So think twice if we are a planning to use the credit card. It would be much better if we save for something we wanted to buy. Do not buy on impulse. We might realize later that we don’t need that item we wanted to purchase especially if it is a want instead of a need.