When the stock market takes a dive, what should you do? Part 2

By Randell Tiongson on August 26th, 2015

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My post yesterday was viewed so much which means many people are really concerned with what’s happening in the stock market so I might as well write a follow-up.

Let me remind that the stock market volatility is the nature of that kind of investing which is why investing in equities is for the risk takers. Remember, high potential returns are high risks in nature. The external factors have taken over the sentiments of people. Fear was the predominant emotion running in the past few days but yesterday’s trading saw a buying action – it seems that there will be very aggressive investors who wants to do bargain hunting. The trading halt due to the technical glitches did not dampen the buying spree, which resulted to a higher index by the end of the day. Will the low stock prices continue to attract the buying momentum? The US equities saw some up in the earlier time of their trading day yesterday but ended down by later part of the day.

When the market dives, should you dive with it? Should you hold on to your stocks or equity funds and wait for it to recover or should you cut loss already and wait for an opportune time to come in again? Well, it really depends on your objective, conviction and strategy. Why are you investing in equities in the first place? Is it to finance a long-term goal like retirement or education of your kids or is it so you can finance your vacation next summer? Knowing why you are investing and when you will need your money will allow you to develop your investment strategy and philosophy. If you are investing because you want a comfortable retirement in 15 years, why worry with what’s happening today? The stock market has proven that when you invest long enough, you will experience good capital growth with your investment.

What should you do now? Well, if you are aggressive enough you can start buying selectively but it might not be a good idea to empty all your savings and buy now as you might end up catching a falling knife. If you are investing through equity funds like mutual funds, UITF or VUL, you might want to consider adding in tranches and not all at the same time. You may also consider waiting until you are certain that the dust has settled just to be sure. Your action will now be according to you and your convictions. Just make sure to always keep in mind your objectives, time frame and risk tolerance. Also, invest money that you are not planning on using in the next 2-3 years.

Just like yesterday, I asked more of my expert friends as to their thoughts and advise regarding the current stock market condition:

Markets tend to have knee jerk reactions to global events, and selloffs are often self-feeding which can result in steep drops. Longer-term, however, historically it’s the fundamentals which have dictated where markets have eventually gone. So if your view is long-term, it may be good to remember that Philippine fundamentals are solid. – Riza Mantaring, CEO of Sun Life of Canada Philippines

As we all know the market correction is driven by the fear that the Chinese economy will no longer be the accelerator behind the global economy. This resulted in an almost 40% reduction of the stock market in Shanghai, which as many Chinese individuals invest their savings, is expected to also impact the domestic demand in China. The reaction however seems to be extreme and mainly caused by panic, as medium and long-term prospects for the region are still positive. My advise is to not try to catch a falling knife, but prepare and be ready to increase holdings at discounted prices when the market becomes a bit more stable in the coming days. – Rien Hermans, CEO of AXA Philippines

Stock markets would always be volatile, it is because of this volatility that above average earnings is possible, embrace volatility! – Alijefty Gonzales, investment advocate & VP of Insular Life

The huge drop in the market over the recent days is an opportunity for long term investors to accumulate. It does not mean that you will not lose money in the short term but it does mean you will earn over the long term. Remember time in the market is more crucial than timing the market. Their emotions when investing especially at times like these sway a lot of people. Stay strong! Keep calm! Live well! This is not the end of days; in fact it is bargain-hunting days! Moderate your investment purchases in tranches over 3-6 months or even 1 year. – Jess Uy, Global investing advocate.

Live a life of wisdom and faith, not of fear!

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Here is a easy to understand infographic from Time that will help you understand the factors that are affecting the stock market today.

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iCon2015: The biggest investment event of the year!

By Randell Tiongson on May 4th, 2015

It’s back! The biggest finance & investment event of the year — iCon2015!

Our annual conference will be this May 30, 2015 at the SMX in Mall of Asia. Joining me in this empowering conference for this year are:

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Marvin Germo – one of the most sought after stock market experts and will talk about stress-free investing in the stock market. Marvin is the author of 2 best-selling books on stock market investing and one of the most visible investment advocates.

Mike Manuel – the Chief Investment Officer of Sun Life in Asia. Mike is an accomplished fund manager for over 2 decades and his team manages one of the largest funds investment funds in the country. He will be speaking on growing trends in investments and how to properly invest for the future.

Efren Ll. Cruz – one of the fore runners of the financial advocacy in the Philippines and has 3 decades of experience in the various facets of investment and financial industry. He is a best-selling author, columnist and one of the most in demand finance trainers in the country. Efren will give us a presentation on investment management.

Chinkee Tan – Mr. Chink+ and the wealth coach of the masses! He is ann award wining media practitioner, best seller of multiple books and one of the most active personalities that encourages Filipinos to be financially empowered. Chinkee will give a talk on the value of entrepreneurship in growing your wealth.

Francis J. Kong – the country’s number one motivational speaker, multi-award winning media practitioner, best-selling author of over 10 books and truly an inspiring coach. Francis will give a powerful and life-changing talk on “beyond investing”.

Aside from our powerful platform speakers, we will have a special session during the lunch break with Dr. Alvin Ang, PhD on the impact of the ASEAN integration on investing and Jess Uy on growing trends on global investing.

I will be speaking on balancing finances and investments and will do an overview of growing trends that will affect investing.

iCon 2015, just like the earlier previous conferences is not only power-pack, informative  and insightful, it is also empowering!

For inquiries, please click HERE or send a message to [email protected] or 0917-8482974

 

 

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Money Talks UAE

By Randell Tiongson on February 5th, 2015

The biggest finance event for the OFW in the United Arab Emirates will happen this March 20, 2015!

Be part of the learning by attending this life-changing event and learn from the experts who have a heart to help bring financial education to the OFWs!

To register, CLICK HERE or email [email protected]

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My guests for this conference are all advocates for financial literacy and have extensive training & experience in finance and investing.

Allan Miranda – Allan is the most recognizable OFW in UAE when it comes to financial literacy. He has been conducting successful seminars in Dubai and Abu Dhabi for a few years now and he is seen as the champion of the OFWs when it comes to financial enablement. He is based in Dubai, UAE.

Burn Gutierrez – Burn is the founder and main driving force behind the hugely successful OFW Usapang Piso forum and the Angat Pilipinas Coalition. Due to his efforts, thousands of OFWs are becoming financially abled through his extensive work using the internet and now even live events in many parts of the world. Burn’s team is composed of many volunteers and leaders and virtually every city in the world where there are many OFW’s. He is based in Al Khobar, Saudi Arabia.

Bernard Anduyon – Bernard Anduyon was the immediate past President of the Overseas Filipino Investing & Entrepreneurship Movement, a group that is almost single handedly transforming the financial lives of the OFWs in Qatar. Doha has a high concentration of financially abled OFWs because of the efforts of Bernard and his movement. His group has been deputized by the Philippine embassy in Qatar to provide financial education to the OFWs in that region. He is based in Doha, Qatar.

Jess Uy – Jess is known as the international investing expert and has been active in investment education and financial planning amongst many OFWs. He has successfully conducted seminars in many countries like Japan, Brunei, Dubai, Qatar, Hong Kong and Singapore. Jess is based in Singapore.

Don’t miss this!

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