For laymen like you and me, mention investment and the stock market is what comes to mind. There are flashy headlines which can send some stocks skyrocketing, while driving others to rock bottom just as quickly. Those volatile movements in stocks or equities trading create massive money-making opportunities. It’s the stuff retail investors just eat up. (They love to talk trash about it online too.) Take the government’s selection process for the new major player in telecoms for example. The country was waiting and watching to see which company would come in to improve telecommunications in the Philippines. Stock market investors, agog over every tidbit of information, were poised to bet on the listed company that would be part of the winning consortium. But we’re not here to talk about the stock market. We are here to talk about the other asset people usually don’t talk about, fixed income. What are fixed income assets? If you don’t know what that is, ATR … [Read more...] about Why you might be the fixed income assets type
How do i learn about the stock market
Why aren’t people drawn to sale in the stock market the way they’re drawn to mall sale? As I write this piece, the Philippine Stock Exchange Index (PSEi) has plummeted to the 6,900 territory from its peak of 9,058.62 just a few months ago. Rationally, the buyers who were so excited to lap up stocks and equity funds when the market was trading at 19.7X PE should be ecstatic now and taking advantage of the “sale price” of around 15X PE. But are they? Imagine a mall sale. The huge red all-caps letters that read “SALE” are enough stimulus to the consumer’s brain to make her enter the store. Before she knows it, she starts putting items in her cart, even those with minor damages because the red tags are enough to compensate for them and rationalize the purchase. Then she patiently waits in line to pay for her “good buys.” Now let’s take a look at the stock market sale. From a high of 9,058.62 a few … [Read more...] about Why aren’t people drawn to sale in the stock market the way they’re drawn to mall sale?
This time last year were the saddest days we have experienced as a family. It was the time we lost the matriarch of our clan, our SuperMom, SuperWife, SuperLola, SuperAunt and friend to many. Yes, that was Mamang, Josefa Maquera Fres who joined her creator on March 27, 2017. We could not complain because God gave her 87 meaningful years with a warning of three years when she was diagnosed with lymphoma in 2014. But as they say, “No matter how old you get, you can never be totally ready for the death of a loved one.” I still cry whenever I really think about her. Those three years The last three years, from the time my mom was diagnosed with cancer until the time she was finally laid to rest, were years of roller coaster highs and lows. There were buckets of tears, followed by high hopes of recovery, only to be followed with sadness and fear as we saw our once-upon-a-time super strong mother who hardly got sick back in the day, lose a lot of weight, become very weak as she … [Read more...] about Passion, Easter, emotional agility and stock market investing
The stock market this week had its biggest decline since the United Kingdom voted to leave the European Union in June 2016. Such moves, and worse, are familiar to Tim Armour, the CEO of $1.6 trillion asset-manager Capital Group. “The most important lesson I’ve learned over time is that you have to contain your emotions,” he said. “Keep calm and carry on” is not exactly the kind of temperament traders are inclined to have when the Dow Jones industrial average is down by over 1,000 points. But that mindset is exactly what’s paid off for Tim Armour, the CEO of Capital Group, which manages $1.6 trillion in assets. “I am never surprised by what the market will do in the short term,” he said in a blog post on Wednesday. “Frankly, I was a bit surprised at how fast the market was moving up in January. It seemed out of sync with the underlying … [Read more...] about A $1.6 trillion investment chief shares the biggest lessons that guide him through erratic markets
Ryan Sterling, CFA, is a senior vice president and investment counselor at Capital Group, working with high-net-worth individuals and families with at least $5 million. Sterling also volunteers with the non-profit Cents Ability teaching financial literacy classes at the Bronx Youth Center. Getting an early start is critical to building wealth, he says, as early mistakes can set you back years or even decades. Whether you’re a teenager learning about money for the first time or an adult with a history of financial mistakes, the time to take control of your finances is now. For most teens, financial planning is a topic far from top of mind. School, sports, and social activities take priority while managing credit, creating a budget, and saving for retirement feels like a long way off. That said, life hits you pretty fast and before you know it you go from being a carefree teen, to a young … [Read more...] about I’m a financial adviser who works with the richest families — here are the 8 things I make sure every teen knows about money