Comments on: Philippine Investor Confidence

By: SoNn

SoNn — Sat, 18 Apr 2009 02:20:42 +0000

You’re right bro, it was a good opportunity for young investors like us. I made a 15% profit from my last stock sale.

By: Tyrone

Tyrone — Fri, 17 Apr 2009 03:19:02 +0000

Thanks Tads for the consistent visit and good comments on my blog.
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In my opinion, this crisis posed a good opportunity for young investors since they have a lot of time before retirement. Because of that, they can ride the volatility of the stock market. I assume the stock market will stabilize possibly next year or year 2011.

By: tads

tads — Fri, 17 Apr 2009 02:49:47 +0000

The crisis has also brought some “blessings in disguise” as more Filipinos learn to cut down on expenses and be more innovative or “madiskarte” in looking for additional means of income.
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Cutting unnecessary costs would really be the first step, or else, we’d not have the excess money to save or invest. Increasing take-home compensation through higher productivity, enhancing skills, improving competence, getting promoted, or embracing additional part-time or “side-line” job, would also be of great help in increasing your net worth.
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Of course, if your savings are just modest, it would be best to keep them as cash or short-term deposits in stable banks. But if after assessing yourself, you find that you have a comfortable level of cash and short-term deposits, and a stable job, you may consider investing in medium to long-term investments, but definitely, do not pour everything into stocks. Equities have reached very low levels, with some signs of picking up, but there is still room for further drops.
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As for me, although I believe that having a diverse portfolio of hand-picked equities and equity funds will soften the impact on my net worth during market crashes, I only buy stocks using money that I am willing to lose up to 80% in value in a worst case scenario.

By: moneyman

moneyman — Thu, 16 Apr 2009 16:28:40 +0000

For me, although I believe the bear market will persist and the rally in the equity markets is just temporary, people who have the excess cash should take advantage of any opportunity that presents itself. In order to make money and be ahead of the pack, you have to be cautiously open, and not merely spectate in this kind of environment. So people who are investors at heart (long-term thinking) should be open to learning short-term trading and take advantage of the rise in the markets. I am a hybrid investor-trader myself, and my portfolio has already grown 12% YTD. I’m no professional, I just watch the news, do my HW (charting) and follow the rules of money and risk management.