Money Magnets

Philippine Stock Market Update

COL Financial recently released their monthly publication called COLing The Shots.  In this report, they
highlighted the following points with regards to the Philippine Stock Market and what they think their clients and investors should do:

• The correction that everyone was waiting for came by surprise in April and the PSEi is now down by 3.1% from its 2015 high of 8,134. The best explanation for the market’s drop is funds flow. While we are seeing weakness in favored markets such as the Philippines, Thailand and Indonesia, markets in Japan, China and HK are performing well. 
• Fundamentally, nothing has changed and we remain positive on the Philippine economy. For the said reason, we would like to reiterate our view that pullbacks such as this are opportunities to buy stocks. However, given the significant weakness that we are seeing in Indonesia and other regional markets, there is room to be less aggressive. And since nobody knows where the bottom will be or when the correction will finish, we recommend peso cost averaging instead of lump sum investing, especially when prices hit attractive levels. 

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COL Financial recently conducted their Philippine Stock Market briefing for 2015.  In their forecasts, the Philippine Stock Exchange Composite Index (PSEi) is expected to reach 8,300 by year end 2015!  Furthermore, the PSEi is still on tract to hit 10,000 by 2020 at the latest.  That gives us Money Magnets a potential upside of 32%!

Here are the highlights of the session:

• Liquidity will be the main driver to reach these levels.  These inflow of cash will come from the quantitative easing measures in Japan and Europe plus the fact that stocks still remain as the most attractive asset class due to low interest rates.

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I am a Money Magnet! We are Money Magnets!

As we were browsing entries in Facebook, we came across this article entitled "Philamlife lures Pinoys with new insurance-investment schemes."  Here's an excerpt from the news article:

Philamlife Lures Pinoys with New Insurance-Investment Schemes
by Edgardo Tugade December 3, 2012.
source: GMANews

The Philippine American Life Insurance Co. (Philamlife) on Monday said it was mostly foreigners who took advantage of the growing Philippine economy by directly investing in industries, while Filipinos kept their money in low-yielding accounts.

Thus, the insurer is introducing new products to help Filipinos benefit from the economic growth of 7.1 percent as measured by the gross domestic product in the third quarter, the fastest growth in South East Asia.

The company is promising returns of at least 8 percent in an insurance and investment plan. 

Rex Mendoza, Philamlife president and chief executive officer, said most Filipinos placed their hard-earned money in savings or time deposits which earn 0.375 percent and 2.75 percent per year, and cannot even catch up with the benign inflation rate at 3.1 percent.

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Market Overview:
- Markets have generally moved higher picking up confidence
- Liquidity flows due to low interest rates have enhanced upward swings
- Philippines outperforms but extended swings may press for temporary corrections (not a mjor one)
- Be aggressive in your trading tactics.
- Inflation is tempered as the global market pushes forward to recovery. (more after the jump)

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