This afternoon Bro. Bo released the most awaited, regular stocks update for the TrulyRichClub. Read this latest issue of stocks update to see what’s happening worldwide. Keep learning, stay invested and enjoy!
Note: To understand the stocks update, first read Bo’s Ebook, My Maid Invests in the Stock Market.
“Lord, may our stock market go even lower…”
My crazy friend said this crazy prayer. He’s a TrulyRichClub member who has now been completely brainwashed by our investing philosophy—that a stock market that stays sideways or goes downward is FANTASTIC for our long-term investments.
But I’m afraid God won’t answer his prayer. Not this time.
Why do I say that? Just look at the terrible fear that’s gripping the world. Everything is falling apart. But the Philippine Stock Market is stabilizing.
Europe Going to Recession?
First,Europe is crashing. Greece and Spain are bankrupt. And they may opt to leave the European Union to escape paying their gigantic debts—which will cause chaos in the financial companies that lent them money and insured these debts. Or they may stay in the EU, with Germany and France lending them even more money. Either way, recession in Europe is almost inevitable.
China—Crashing with a Soft Landing
Second, China’s economy continues to slow down—intentionally. (Reason: Too much hypergrowth in the past years.) But the good news is that the Chinese government is sitting on a massive mountain of cash. (Rough estimates say $3.5 trillion is at their disposal.) This is the total opposite ofEurope where many countries are bankrupt. And the Chinese government is now starting to spend on infrastructure to “soften” the economy’s landing.
US Market Gripped by Fear
Third, the US Stock Market has gone down even more. Why? Irrational Fear. Because if you look at big US companies, their earnings are actually going up.
So why are their stocks going down? Because of what’s happening inEurope and China, people aren’t buying stocks. They were burned in 2008 and they don’t want to be burned again. Thus, the fear.
There’s More Fund in the Philippines
What about the Philippine Stock Market? Economically, we’re one of the few bright spots on planet earth. Gosh, we’re not used to this kind of news. It feels weird.
We’re used to being the basket case of the world.
Not this time. Despite what’s happening worldwide, our stock market is holding. The sideways motion continues.
Now if a gigantic event happens—like a Greece or Spain pullout from EU—we’ll feel a jerk downward.
But our fearless prediction is that we’ll bounce. (If we’re wrong and we’ll stay down, we’re still okay. Because we’ll have more time to buy our fantastic companies at cheaper prices. And it’ll also mean that my friend’s crazy prayer above was answered. Sheesh.)
Last month, we said that the Philippine Stock Market would have a sideways or downward motion for three to six weeks. So we’ll probably have two or three more weeks to go before we start inching our way up again. (These are all intelligent guesses. We don’t know exactly when…)
So what should we do?
Our strategy has always been the same—in good times or in bad times: Keep buying every month. Our very simple SAM (Strategic Averaging Method) protects us from all sorts of crisis.
Another fearless prediction: After 20 years, you will outperform 90 percent of all the traders out there who are trying to “time” the market.
Aren’t you happy you’re in the TrulyRichClub?
May your dreams come true,