Here’s the 2012 Outlook of Mr. Joseph James Lago

On PSEi:
Should the Philippine economy post at least a 5.0% GDP growth in the first two quarters of this year, corporate earnings continue to improve, concerns of a domestic real estate sector glut is not a severe as currently anticipated, and the US economy continue on a moderate growth path even if the euro zone enters a recession as a whole, we believe the PSEi could finally hit the 4,800 level in the 2nd half of 2012.The arguments to a resumption of the bullish trend are weighted on the 1st half of the year as valuation and global
economic growth concerns linger. The immediate support of another potential sell-off is the 4,100 level. A triple bottom pattern at 3,705 cannot be discounted in the medium-term.

Peso – US dollar:
The dollar’s appreciation is likely to be sustained in 2012 if the US economy continues on a moderate growth path as anticipated. The other push factor is the euro’s loss of allure as an alternative reserve currency given the still unresolved debt crisis. If the 44.70 level is
surpassed, the peso could depreciate to around 45.50 – 47.00.

On Domestic fixed income yields:
Given that excess liquidity might still be a dominant factor even if this year’s average inflation will be close to 4.0% more or less, we expect negative real returns on the short-term yields to continue despite it gradually rising and seeking a new equilibrium level.
Yields on the longer-tenor instruments might dip further as investors continue to seek more attractive peso yields. As a result, the spread between the average short-term and long-term yields should finally normalize to around 250 – 300 bps for the year, with the yield curve still essentially normal.

Equities portfolio:
Smart foreign portfolio managers began changing their equities strategy in the middle of 4Q last year given the uncertain short to medium-term outlook, and the unusually low fixed income yields. Following the massive sell-off and flight to safety that ended in
September, equities portfolios were realigned to be geared primarily towards dividend capture. This is not an unusual strategy as smart domestic investors already implemented this strategy in the latter part of the 2000 – early 2003 period. Local telco stocks that carry high dividend yields that were unappreciated for about two years
became the darlings in December.

We are essentially underweight equities for the first half of 2012, in line with our overall outlook for the PSEi. Our recommended equityportfolio allocation strategy is that the portfolio be skewed towards issues with a high dividend yield, and at the same time firms that practice a dividend growth model. We believe that value stocks whose leading PER and PBV are at a discount to both the PSEi and regional averages will be good additions to round out the equities portfolio.

We acknowledge that price returns with some stocks will occur and maybe realized even in an uncertain market. But the issues will most certainly be random. Should the domestic economy indeed meet the minimum growth hurdle rate, and the US economy continue on a moderate growth path as aforementioned, the equities portfolio must then be
re-balanced in the 2nd half of the year to capture price returns.

Joseph James Lago is the Head of the PCCI Securities Brokers Corp. He has over 2 decades of experience in the investments industry in various capacities. He is also a professor of the De La Salle University Graduate School teaching in Management and Economics. He is a sought researcher, economist and analysts.

We had a nice and very candid discussion on parenting and teaching our kids about money.

Sharing with you our conversation:

Part 1

Part 2

Part 3

Part 4

Attend the Personal Branding for Finance Practitioners

July 8, 2011     RFP Office, Tektite Bldg., Ortigas, Pasig City

AN OVERVIEW:

This interactive, cathartic and practical seminar will help you understand, create and send out the unique brand that is YOU. Today’s business world is fast paced and so are the decisions and judgments we are making. There are more than a lot of business men and women, financial advisors, entrepreneurs both young and experienced bringing the same products, skills and services to your field in the industry. But why do some people still stand out above the rest? Best bet is that these people, consciously or not, have their own unique personal brand.

WHY SHOULD I ATTEND?

Learn from Randell Tiongson, one of the country’s popular names in personal finance, a columnist for the Inquirer and MoneySense, and one of the directors and founders of RFP Philippines. Randell will teach you the secrets to building, winning and transmitting your personal brand. After this seminar, you will have uncovered why personal branding is so important to helping you on your way to wealth.

PROGRAM OBJECTIVE AND BENEFITS:

• Creating a personal brand for Finance Practitioners
• Why is branding important
• How branding can help your profession
• How branding can result to higher productivity
• Ways to be known beyond your circle
• Ways to improve your personal brand
• Case study presentation

Registration Details

Registration is on a first-come, first-served basis. Don’t miss this event, reserve your slots now!

• Date: July 8, 2011
• Venue: RFP Office, Tektite Bldg., Ortigas, Pasig City
• Time: 1:30 to 5:00 pm
• Contact Number: (632) 494 1322

As parents, the future of our children is always foremost in our minds. I am actually looking forward to the day my children will spread their wings and explore the world and the only thing I can do is pray for them as they make decisions that will define their destinies.

Last Saturday, I partnered with a mother and son team to bring about a repeat of Blue Chip, a program that teaches the youth on finance and entrepreneurship. Christopher Young is only 17 and a junior high student, he took the task of organizing Blue Chip for his friends and acquaintances, with the help of his energetic mother, Karen Young. There were more than 40 young ones taking the program and all this because a young boy believed that a program like Blue Chip will really help him and people of his age. A supportive mother like Karen brings out the best in our youth as she guided him, supported him and co-labored with him to ensure that Blue Chip will be a success. When the organizing of the program became difficult as participants were not responding the way it was forecasted and sponsors were lukewarm in their support, Chris and Karen were steadfast in their commitment to Blue Chip despite the odds. The audacity of a 17 year old boy to mount a program like Blue Chip was inspiring — stories like these make me feel secure that the next generation will do great things in the future. Parents like Karen are great role models in nurturing successful children.

I was so honored to share the platform with other speakers who shared the vision for the next generation. My friend and Pastor, Jayson Lo touched the hearts of the kids by reminding them what is really important in life imploring them to invest in relationships and value character above everything else. Carlo Ople, the country’s most notable personality in the social media environment was a big hit with the kids as they really learned from someone who understands and share their passion on social media. Carlo espoused the role of communication for business and career building. Paulo Tibig encouraged the youth to dream and dream big and strive for success. He reminded the youth that success is not achieved overnight and those are winning strategies for success as an entrepreneur. Jaret Garcia shared his story as a student making money and the challenges he needed to overcome business challenges. My lecture was about financial management and investing and I echoed the value of discipline in handling money. A real treat that day was interviewing and listening to the young Anton Fausto, a 14 year old investment whiz kid who also shared how he manages his own portfolio. More than inspiring the youth, the Blue Chip speakers gave practical instructions in achieving successes in money and business.

The day after Blue Chip, I attend Sunday service at Victory Green Hills and was delighted that the topic for the service is about the next generation. A very youthful pastor named Bojo Bonifacio was preaching about the next generation using biblical context. Hearing Bojo was a treat – a young 26 year old pastor leads a throng of exuberant teens, raging hormones and all that and remaining to be relevant and yet grounded on biblical truth. I was in store for another treat when Pastor Bojo called for 2 women on stage, a teenager to pray for the youth and a mother to pray for the parents. Praying for the youth is my 17 year old daughter Gabbie, a freshman in college. She admonished the youth to be in faith and be steadfast in their faith as well as challenging them to follow the examples of Christ and not of the world. My beautiful wife prayed for the parents, petitioning the Lord to give parents the grace, patience, temperament and love as they are tasked with the difficult role of parenting. Hearing my wife and daughter pray one after another warms my heart and I can only thank the Lord for such a blessing.

I admonish everyone to do everything they can to prepare the NEXT GEN. The greatest atrocity we can do in this generation is to forsake the next.

Train up a child in the way he should go; even when he is old he will not depart from it. – Proverbs 22:6, ESV

Video recap of the June 11, 2011 Blue Chip courtesy of Kris Young.

For all inquiries, please send an sms or call 0927-3565544 or 0939-1177856.

Learn from:

CARLO OPLE – The country’s leading expert on New Media, Social Media Marketing, On-Line Reputation Management. Carlo is currently the New Media Head of TV5 and has extensive Marketing experience from Level-Up & Friendster and has successfully undertaken successful marketing campaigns for many top brands and companies.

PAULO TIBIG – The Entrep Champ! He is the CEO of V Cargo, one of the largest cargo companies in the country. Paulo started to earn money as a student, moved into employment, established their business and became a certified millionaire before hitting 30. Paulo is an entrepreneurship advocate, speaker for Go Negosyo and many programs and the one of the most in-demand business speakers of the country today.

JARET GARCIA – Basket Ball Player turned Radio DJ turned Businessman. Jaret is the President of his own printing & marketing services company, Polygraphics. He started to be in business in his teens and has achieved many successful endeavors – and he is not even 30 yet! His company’s roster of clients include the leading brands today.

JAYSON LO – A young businessman that God called to serve His people. Jayson has extensive experiences in Multi-Level Marketing, Direct Selling & Food Business aside from being a popular trainer on business, money, leadership and communication. A veteran in the speaking arena & business, he is now a Pastor and continues to teach values & success to the work place today.

RANDELL TIONGSON – An advocate of Life & Personal Finance. He is one of the country’s preferred speaker & trainer in the area of personal finance & business. A director for the Registered Financial Planner Institute, columnists of the Philippine Daily Inquirer & Moneysense Magazine and a regular resource person for TV Programs in the leading Network. He has giving lectures in trainings in the leading corporations, public arenas and even in the international scene.

Catch them on May 4 & 5, 2011. Details in the e-poster attached.

**All the proceeds of this learning event will be blessed to the building fund of Victory Green Hills.

Brought to you by the Registered Financial Planner Institute Phils. (RFP). Please help promote this event by sharing this information and links to this post. Many thanks!

I have the privilege to co-write this column with my dear friend and colleague, Mr. Efren Ll. Cruz who is also a Director of the Registered Financial Planner Institute.

Thanking the Lord for making this a reality.

Read my debut HERE.

What should we do? Well, we should continue to build more professional practitioners, teach them well and make them adhere to values like competence, integrity and commitment. At the same time, those who are in a position to create awareness should go double time. Write more books, have more seminars, build more websites, blog more frequently, publish more articles… the list goes on. Take awareness to more main stream avenues like the mass media but it can go beyond that. I am ecstatic whenever our church (Victory Green Hills) will tackle topics that will revolve around money and personal finance. The church needs to look after its flock, money issues are foremost in their concerns. Church related celebrities like Bo Sanchez and Chinkee Tan have been talking about money and personal finance from a biblical perspective and are convincing people that God truly wants them to live victorious lives. I was once interviewed by a Bishop for his TV talk show and the topic is personal finance. I asked the Bishop why he felt that there is a need; he told me that the church is really concerned about the welfare of the people, spiritually and physically (or financially). The Bible is full of verses that relates directly to money issues and when you read it, you can really feel that God wants us to be living great lives in all aspects. Bo, Chinkee and many more are making people realize that… great! I am encouraged to see more authors write about the topic and its great that their books have been selling well. My good friends Efren Cruz (Pwede Na! series), Chinkee Tan (Till Debt Do Us Part, For Richer & For Poorer) are great & practical books to help people. I also endorsed a new book by Ardy Roberto on biblical finance. The country’s leading motivational and inspirational guru, Francis Kong, has been encouraging people to take control of their financial lives through many of his seminars and talks. These are all great… and we need more, more, more! Sometimes I do wonder if I’m making any impact at all, even a miniscule one – I guess only time will tell. However, I will continue to do what I am doing for the next 20+ years and longer, I hope. I want to encourage people in the profession not to give up too easily when their job becomes too challenging. I would like to encourage my peers in the training profession to continue to teach. I would hope that people like Efren, Chinkee, Ardy & Francis will continue to write books and speak to as many Filipinos as they can. I pray that there will be many of us who will help our brothers’ plan for their future.

22+ years in the industry. The past was good and the future will be bright if we do the right things in the present. Looking forward to my next 20+ years! Let’s go and help people plan for the future!

Share with God’s people who are in need. Practice hospitality. – Romans 12:13, NIV

The fact that many in this profession are more interested in making a sale than actually helping people only adds to the difficulties. Making a sale is not an issue, one need to earn from his profession and sale of financial instruments is a very honorable profession. However, when a practitioner starts to misrepresent and mislead clients, that’s a big problem. Many practitioners would make unfounded claims for their products, like a low risk and high yield product — yeah right! Unscrupulous practitioners should be behind bars or at least barred from practicing. These practices make it very difficult for legitimate practitioners from gaining the trust of prospective clients.

Trust — it is the key to helping plan their financial future. A financial planner needs to build his competency and exhibit utmost professionalism at all times so that he will be listened to. If one wants to experience success in the financial practitioner profession, he needs to really build himself well.

Unscrupulous practitioners notwithstanding, Filipinos really need to hear from professional practitioners and must have open minds and open hearts. Our average financial condition is really disturbing and causing us a lot of difficulties in life. Further, the economic impact of a nation of uninsured poor savers is really precarious.

… to be continued