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.

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?”

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 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?”

You have to break the law

A lot of people (including myself before) are thinking of high salary, working abroad, winning the lotto are some of the best solutions to their money problems.

Are these really true?

Sometime in 2005, I decided to pursue my career overseas. I got my 2 years contract with one of the biggest telecom company in Afghanistan. Continue reading “You have to break the law”

Old is cool: Reasons why I love my old car

After typhoon Ondoy struck Metro Manila four years ago, we decided to move and rent an apartment in another subdivision because our previous place was heavily flooded. Since our access to the main road is a bit far, my wife and I realized that we need car so we bought a 12-year old car online. Owning a manual transmission car is a very big challenge to me. Why? It’s because I don’t know how to drive! So the car needs to be parked in the street for several months before I can use it. At the time, the idea of investing in stocks has not come to me. In summary, here are the top reasons why I love my old car based on my experience:

It can take me and my family from point A to point B. Like most brand new cars do, my old car takes me and my family safe and sound from one place to the other. Now I don’t have to rush early in the morning to the bus station for the first trip whenever we decide to go to Laguna for a weekend break or a vacation. Continue reading “Old is cool: Reasons why I love my old car”

Still afraid investing in stocks?

A lot of people know and heard about the stock market, its benefits over the long term and specially if compared to banks’ offered savings and time deposit accounts. Surprisingly, few people get started investing. I’m also guilty about this. The most common question is: “How and where do I start?”

Knowing where to start investing in the stock market is very important. Most people are stuck to this because they don’t know where and how. I remember 3 years ago when I heard about investing in stocks. Somebody sent me the e-book of Bo Sanchez where he explains the stock smart. Although the book is easy to read, I have run through it many times until convinced myself that I should start it out. Continue reading “Still afraid investing in stocks?”

How to smell a scam away

“Make your money work for you” is a very popular slogan used in scams to attract investors.  Now if you are not aware, chances are you will fall to this trap especially if they promised to give enormous returns over a short period of time that will make you rich quick.  There is a very informative and a real life video from pesos and sense about this where a professor of Adamson University was a victim.  Watch it below:

In the Trulyrichclub, our mentor Bro. Bo Sanchez is giving several tips on how to smell a scam away and how to identify its many faces.  It’s a long article but I think worth your time reading.  Here it is: Continue reading “How to smell a scam away”