Buy on Bargain

Philippines stocks continue to slide due to global dynamics. With Middle East crisis, China raising interest rates and U.S. economy picking up. Foreign investors are dumping local stocks resulting to what they call bloodbath.

My take on this one is that make this as an opportunity to buy more stocks of companies that have sound business models and good potential upside. Those companies whose earnings are in record highs and are projected to continue their winning streak will eventually correct.

Middle East Factor

There is a spreading discontentment in governments around Middle East from Tunisia and now Egypt.
It already is affecting the last day of trade this week and I believe it will continue to do so next week.

For those who wants to by, I advise to wait for the bottom of this before taking action. For those who wants to sell, sell cautiously so it won't compromise your position.

"Buy when there's blood on the streets"

Stock Investing is never a gamble if...

1. You do it for long term purposes
2. You select stocks of businesses which have good fundamentals and proven track record
3. The company behind the stock has sound business model
4. You follow expert's analysis on a regular basis
5. You won't let your emotions take over decisions on short term fluctuations

Purpose Driven Investments

I attended a symposium on investing last December 2011.
The main speaker was Rex Mendoza, an executive of Ayala Land.

He made several interesting points on why we should earn and invest while we are young.

1. For yourself - You need to reward yourself either by traveling, buying a new car, building a retirement house. "Dreams have deadlines" so indulge.

2. For your family - As we grow old, health related expenses will rise. It's good to have a considerable nest egg so we don't become a burden to family members.

I found these very valid especially the second point. It happened to so many people I know. One thing for sure, We can't allow ourselves to become a burden to our sons and daughters.