A buying opportunity?

After the recent US presidential election surprisingly won by Donald Trump, the Philippine stock market reacted negatively. At the time of this writing, the PSEi index fell below the 7,xxx mark and is now at 6,982.97.

This is because of the concerns how Trump’s policy would affect the Philippine economy specially the BPO sector or the call center industry. Going back in 2013, the revenue from BPO generated about $15.5B and $22B revenues last year (2015) which employed 1.1M Filipinos.

financial-crisisWe can recall in Trump’s presidential campaign that he would bring back jobs to America in the manufacturing side. Although this has nothing to do with the BPO sector, there is a possibility that Trump would also influence Americans not to outsource non-manufacturing jobs in other countries such as the Philippines.

When this happens, it will surely hit our economy since 70-80% of the BPO employers are based in US. Among the publicly-listed companies in the property sector heavily affected are ALI, RLC and MEG.

Analysts believed that this negative market reaction is only short term. According to Bloomberg, the market reaction on US presidential election is not an indication of how the market will perform in the next 12 months.

One reason to consider is the difference between the hourly wage of Americans to Filipinos in the field of BPO. According to Glassdoor, the hourly wage for a Filipino call center agent is around $2 while in the US it’s around $10.5. That is a huge difference which will make them think twice pulling out their businesses.

On the other hand, there are other factors that drive the Philippine economy. That is, the government spending which is eyed by the president (infrastructure, banks & tourism) and investment spending excluding the BPO industry (consumer and power).

As a conclusion, analysts such as COL Financial believes that this is a buying opportunity for us at a cheaper price specially when PSEi falls below 6,700 which they recommend to buy aggressively.  Time to accumulate more stocks!

Let us know your thoughts in the comments section.

Top Stock Picks that will benefit from Duterte administration

COL Financial in its latest issue of COLing the Shots talks about the recently concluded SONA of our president. Based on the article, COL Financial identified all possible sectors that believed will benefit from Duterte administration.

This is very good information specially for those people asking what stocks to buy nowadays that PSEi step up at 8,000.

There were four new stock picks added on the list namely EEI (infrastructure), CEB (tourism), CIC (consumer) and MBT(banking). As of this writing, only EEI, CEB and MBT can be bought among the four.

Fair Values or Target Price of existing stock picks were also adjusted adding more options of companies we can now buy. Personally, I don’t like CEB, perhaps my emotions considering my bad experiences from the past such as delayed flights and poor customer service but this is just my opinion.

Below is the latest COL stock picks that analysts believed to benefit from Duterte administration:

stock picks under duterte administration
stock picks under duterte administration

The complete report can be found by logging in to your COL account, go to Research –> Archive.

Thoughts?  Let us know by posting your comment below.

Is investing in stock market safe?

Before starting out investing in stocks, one big question always asked is “is it safe to invest in stocks?”.  Well the answer is; it depends.  Let’s examine why.

Take note that there is always risk in investing but the good news is that you can manage and minimize risk by doing your homework.  Always remember this: it’s you and only you who are in charge of your money.

The fact is, if you don’t invest, you are already losing the value of your money because of inflation.  As Robert Kiyosaki says “not investing is risky” and “savers are losers”.

There are two major “players” in the stock market. Continue reading “Is investing in stock market safe?”

COL Financial Mobile App for Android

Last April, COL Financial launched its beta version of app for android devices.  This is great news for all android fans out there who have been waiting for quite some time after its iOS counterpart released last year.

I know this is a bit late but today I will reveal the step by step guide on how to install and show you some of the menus available and finally describe how to use it for viewing your portfolio.

Let’s begin by downloading the app.  Unfortunately, this app is not available in Google Play where most people expect.  Because of this, you have to adjust your phone’s security settings like the one below to avoid possible issues.
security-settingsYou need to logon to COL Financial website using a browser installed in your android phone.  Alternatively if you’re one of the users who don’t have the apk file in their account, you may download the file here.

In this guide, I used the browser Chrome to logon to my COL account. Continue reading “COL Financial Mobile App for Android”

Reasons to believe

Last month, Philippines was included in top 20 of world’s economy in terms of GDP growth prediction for 2015.  Next to China which is number 1, we are number 2!  So what does it mean to us?stock-market-analysisThe good news is that this is another great opportunity to gain more profits this year through the stock market.  If you are already an investor, congratulations!  If not, then its time to take action and be one. Continue reading “Reasons to believe”

Are you ready for emergencies?

Time flies really fast!

It was already 9 years when I went abroad for a career opportunity.  And because the place is hazardous, I didn’t bother about anything to get there.  In short, all expenses such as visa, and other papers are all paid by the company who hired me.

I went abroad together with several Filipinos, mostly veterans from Saudi Arabia in their 40s and 50s.  It was a great experience because aside from having new set of friends, I didn’t feel sad while being away from home. Continue reading “Are you ready for emergencies?”

Are you financially healthy?

Last week, I got a chance to attend our company sponsored Financial Wellness Session.  It was conducted by PRU Life UK.  It was a very enlightening discussion and fun too.

They asked us to play games that made us realize the value of investing in different investment vehicles such as stocks, business, mutual funds and real estate.

Here are some of the notes I have taken during the session.
Continue reading “Are you financially healthy?”

Introducing the COL Mobile App

This morning I received an email from my stock broker COL Financial informing me that the mobile app is already available but only for IOS. The android version is still to come.

You can download the app by simply logging in to your account using a browser, in my case I used Safari. Click on the Downloads at the Home Page then follow the next instructions and voila, there it is! Continue reading “Introducing the COL Mobile App”

A glimpse of SMPH sale

Last week it was a surprise when one of my blue chip stocks, SMPH enters the “red zone” after a year of sitting in “green”.  Oh yes before I forgot, we already entered the month of AuGHOST.  Many investors and traders believe this to be the month when stock prices are getting cheaper.smph-stocks

Continue reading “A glimpse of SMPH sale”