Money Magnets

• Having a Prenuptial agreement (prenup) is good.
• Marry someone who you can freely discuss money issues with.

• The Philippines got its first ever investment grade debt rating from global credit rating firm Fitch.
• Fitch upgraded the Philippines sovereign credit rating to BBB- from BB+
• An investment grade rating tells investors it is safe to do business in the country and encourages them to put huge capital in the country.

• With a Price Earning Ratio (PER) of above 14x, the Philippine stock market remains to be the most expensive.  This is above the country's 15-year average of 15.5x but still significantly lower that it's peak of 16.7x back in 2007. (BPI Asset Management)
• Philippine PER is higher than Asian market PER of 12x (Julian Tarrobago Jr., ATR Kim Eng Asset Management)
• While expensive, fund managers still believe that the PSEi will surge in the fourth quarter and end the year with record highs.  BPI Asset Management said that 5,500 is very much achievable.  While Julian Tarrobago of ATR Kim Eng has set a higher target of 5,800.
• Growth will be powered by a surging Philippine economy, better than expected corporate earnings, low inflation rate, and higher market turnover (participation in the stock market).
• Sector-wise BPI is still bullish on PROPERTY firms, CONSTRUCTION companies, and FINANCIAL institutions.  
• Mr. Tarrobago on the other hand suggested looking at small cap stocks that are "less-known, small and medium-sized companies capable of strong growth."

• 8 out of 10 heads of Filipino households do not have a bank account
• Reasons cited for not having an account were: not enough money to deposit, high amount of minimum deposit balance, and aversion to dealing with banks.
• Average cash on hand of Filipino families for emergencies is at only 1,681 pesos.
• 4 out of 10 households do not have any cash for emergencies.
• 2 of 10 families depend solely or partly on remittances from Overseas Filipino Workers (OFWs)
• 7 of 10 Filipino households are not risk takers.  They rely on fixed income instruments rather than start up or invest in businesses.

• Philippine stocks ended Feb-2012 with another stellar performance up 4.6% month-on-month (+215 points), and up 12% on a year-to-date basis, its best in the last few years.
• The month also saw the PSEi hit consecutive record levels reaching 4897.65 points last February 29 in a liquidity driven rally.  Net foreign buying for the month reached  USD $170 million.
• The PSEi recently hit another all time high of 5030.58 points last March 5. (5,050 points last March 14).  To date, the index is still up by 14% as of March 9, 2012. (More after the jump)

The Practical Way to Financial Freedom