President's Message
Atty. Benedicta Du-Baladad Message from the President:

Benedicta Du-Baladad


To FINEX members and friends,

PRESIDENT’S REPORT
November 2017 Issue

We are now on the final stretch of 2017. This year has been one of the busiest and exciting for both FINEX and the country.

Earlier this month, our country was once again placed in the limelight as we hosted this year’s ASEAN Summit. The summit provided us to showcase what our country can share to the world and the creativity of the Filipino people. Indeed, the recent hosting of the ASEAN summit placed our country

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On stock investing, play it safe but not too safe
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Atty. Billy CortezBy Atty. Billy Cortez

MANILA BULLETIN (Business Option)
October 17, 2017

On stock investing, play it safe but not too safe

Business Option is a rotating column of members of the Financial Executives Institute of the Philippines appearing every Tuesday & Thursday in Manila Bulletin, business section.

Over the past couple of days, the local stock market accelerated beyond the psychological mark of 8,000 and is now trading in record territory. The benchmark Philippine Stock Exchange index hit a new record high last October 13, closing at 8,447.94 , up 45.13 points, or 0.53%, while the broader All Shares index gained 9.83 points, or 0.19% to finish at 4.938.11. Asian stocks also reached a 10-year high last October 12, reflecting the overall resurgence of equities all over the global equity markets.

Perhaps it has to do with perceptions of things to come. When investors feel things will continue to get better, they buy stocks particularly those stocks they think must be part of their core holdings.

And more often, that’s exactly what happens when there’s a raging bull market like what we have at the moment.

However, there are certain points to consider that go with your stock investing. There are, of course, risks associated with ownership of common stocks.

For instance, you may lose all your profits and some of your capital if you speculate in low quality and cheap stocks that may be temporarily popular but the odds against investment success are pretty strong.

Keep this in mind. Just focus on the potential of the listed company well beyond the current events.

It’s only human to join the herd, buying when the market is moving up or selling when the market is going down. The point is always to have realistic expectations. Get familiar with all the data, research reports on the stocks you intend to buy.

You can, however, further reduce your risks and still make money with common stocks.

This means you better stay away from ridiculous risks and instead be factual and realistic with your stock selections. Here are the primary ways:

(1) do your homework. Read as much as you can about the stocks you plan to buy. Read also about the present state of the national economy;

(2) related to item no.1, don’t be too quick to pull the trigger and buy something too soon. Be patient;

(3) don’t try to time the market. No one can. Just stay in the market using only your long-term funds primarily allocated for your stock investing, and not those funds intended for living expenses. Remember your goal is to invest wisely;

(4) in buying stocks, go only for large stocks. The odds of success are greater with large companies because they have more capital to weather financial storms;

(5) more importantly, don’t get too caught up in today’s problems. Political noises, floods, earthquakes, terrorism, currency fluctuations and other similar cases may appear to shake up the country.

But don’t just sell when such events happened. Just keep your head while others are losing theirs. Again be patient.

Good investments eventually grow over time. As the saying goes, “little acorns can grow into giant oaks.” Legendary investor Peter Lynch reminded us of this when he wrote the following advice in his best-selling book, Beating the Street: “Your ultimate success or failure will depend on your ability to ignore the worries of the world, long enough to allow your investments to succeed.”

*****

Atty. Billy Cortez is an independent board director at First Metro Investment Corporation (Metrobank Group). He was formerly FINEX president and chairman of the Capital Markets Development Council. This e-mail address is being protected from spambots. You need JavaScript enabled to view it

https://business.mb.com.ph/2017/10/16/on-stock-investing-play-it-safe-but-not-too-safe/

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