An Early Christmas Gift From the Stock Market!

No, I did not received any dividends from my investments. Nor my stock portfolio is green. In fact, its the other way around. My portfolio is  red. 

A few months back, I'm beaming ear to ear with my paper profits. A two digit return in less than a year is great especially if you compare it to other investment vehicles.

Today, I am happier with my deficit. I don't care about the returns in the short term. I'm more excited on the opportunity to invest at fire sale prices!

I know some of you are somewhat worried on the current downturn. That's perfectly normal. Nobody wants to lose. 

However, stock market is not for the impatient. We're here for the long haul. And when I mean long haul, it's a decade plus. Yes, more hair will fall  and turn gray before you can truly feel the results of your investments. 

Today, however presents an opportunity to buy at lower prices. It's been a while since we've been at this level. It's a buyer's market now. And if you're a buyer, its an exciting times to invest indeed!

The current downturn was caused by the negative sentiment brought about by super typhoon Yolanda. Just as our lands, houses and trees were swept away by the powerful typhoon, our stock market was hit by the super typhoon also. Foreigners dump their shares since the aftermath of 'Yolanda'. 

Source:AFP

I watched CNN every single day during and after the typhoon. The images were apocalyptic! It's just unimaginable! 

My wife and I pulled some clothes from the drawer, packed them and gave them to a charity organization collecting relief goods for Yolanda.

As international media peppered their news program with images and videos of the destructive forces of super typhoon Yolanda, foreign investors were fed with information that requires them to reassess their investments on the economic repercussion of Yolanda's wrath. 

The Aquino administration is being praised for its drive against corruption by the international community. The removal of the SC chief justice, his blunt admonishment on under performing chiefs of departments, and sacking of corrupt officials. 

The investment grade, high GDP growth, growing remittances, robust consumption all helped in changing foreign investors sentiment to positive. As a result more dollars flows into our country.... 

Until 'Yolanda' struck. 

The slow response of the government, and political wrangling on aid to victims lowered the enthusiasm of foreign investors.

The Napoles scandal did not help too. The country is perceived that corruption still pervades in the government.

While the current sentiment brought the stock market down, I think the fundamentals remains the same. We are still a consumption driven country. Remittances will still increase every year and GDP growth rate will still be above its peers. 

The short term may not look good but I believe our country will just dust off the current bumps and will slowly change the sentiment from negative to neutral and finally positive.

Meanwhile, enjoy the current Christmas sale being offered in the stock market. It may not last longer.