Where we should invest, tooBy Randell Tiongson on September 17th, 2010
THE Philippine stock market ended at a two-year high on Thursday. The market is buoyed by good economic prospects, as well as a strengthening Philippine currency. Hopefully, we can see the index breach the 4,000-mark soon, while there are forecasts that the peso will strengthen further to P43 or even P42 to a dollar. It is widely believed that our country has good fundamentals which are being reflected by some economic indicators. President Aquino aims to expand the economy by as much as 8 percent, not bad at all. Asian economies are expected to outperform American and European markets and if our current situation is any indication, I’d like to believe in such a bold statement.
Those who took positions and made investments last year are smiling today; they have since experienced a big boost in their portfolios. Those who experienced losses during the crash of 2008 but stayed in the market have begun sleeping comfortably again. Will the current condition usher in a bull run as many analysts predict? Only time will tell. Risk-management techniques such as diversification, cost averaging, modern portfolio, etc., are all prudent steps to make risk more bearable and, at the same time, take advantage of the surge in the markets today. While there is always the risk of market correction which will temper, if not reduce or wipe, the gains will always be a real issue, I will not rain on our parade just yet. My view is, if you are investing for the long term, continue to do so regardless of market conditions. Reviewing your portfolio vis-à-vis your investment objectives and staying within your risk tolerance should always be your primary plan of action.
There are other investments one can always consider: fixed income, money market, real estate, business ventures, gold, precious metals, art, etc. Creating your investment portfolio is best if you always consider other instruments. However, there is one investment that I always recommend: investing in memories with your loved ones.
Sometime ago, I interviewed a good friend and one of our pastors in Victory Church, Paolo Punzalan. He told me something that struck a chord, and one that I will never forget. He said it is his goal to invest in memories with his family. While spending money for a family vacation can affect your cash flow and even your portfolio, the gains you will get from such an investment can’t be measured by any financial standard. While our investments can go south and we risk the chance of losing our hard-earned monies, we can never go wrong when we build on the memories we have with our loved ones by investing time and money on them. I fondly remember all the family vacations I went through growing up and my kids always talk about the trips we take. It’s not just vacations that we can invest in—it can be as simple as going to the mall, park, movies, and especially going to Church and praying together. As we invest, we must always put God in the center, and we can be assured that our investments will grow: in money and in relationships, as well.
“Hear, O Israel: The Lord our God, the Lord is one. Love the Lord your God with all your heart and with all your soul and with all your strength. These commandments that I give you today are to be upon your hearts. Impress them on your children. Talk about them when you sit at home and when you walk along the road, when you lie down and when you get up” (Deuteronomy 6:4-7, NIV).
Appears in Business Mirror, 09.14.2010