A Banner Year for the Philippines...

Miss World – Megan Young

Megan Young, our representative to the Miss World beauty pageant held in Indonesia was recently crowned as Miss World 2013. This is the first time that a Filipina won this event. After 62 years of excruciating agony hoping to hold that magic wand, sit in the golden chair, and wear that diamond crusted crown, we can finally say “Yes, we did it!” Or should we say, Megan Young did it for us.  

photo by Murdani Usman, Reuters

Her hard work, sacrifice and passion carried us on to win the event. Once again, we are beaming with pride and honor. Before the pageant, she posted on her official Miss World - Philippines Facebook account, “Sa aking mga kababayan, huwag kayong mawalan ng pag-asa. May bukas pa at may laban pa tayo. Taas noo tayong lalaban pero tayo’y magpakumbaba pag dating sa ating mga salita. Buong puso ko at puso niyo ang lumalaban dito. Itong laban na ito ay para sa ating lahat. Sana makapagbigay inspirasyon ako sa lahat ng Pilipino katulad rin ng aking mga iniidolo na lumaban para sa bansa. Laban, Pilipinas.” Yes, Megan. Your fight is our fight. Your battle is our battle. Together, as one united Filipinos, you as our representative and we as your avid supporters with undying fervor to support you, we can overcome the hurdles and challenges in the international competition.

More importantly, the win mirrors the resiliency of the Filipinos who in spite of their struggles continues to endeavor to be triumphant and victorious in the game of life.

To Megan Young, thank you for bringing honor and pride to our country. You did inspire all of us. Kay sarap maging Pilipino, taas noo kahit kanino.  

Source: Rappler

2^nd Place, FIBA Asia 2013

The victory of Smart Gilas over South Korea is still fresh in my memory. The fearless drives of Jason Castro, the clutch three point shots of Jimmy Alapag and jumpers of Ranidel, the hustle of Marc Pingris and the passion of the Filipinos.

I watched the encounter through streaming videos. It’s a little bit blurred but enough to see the action and recognize the players. Besides, this is a game where we can take off the monkey on our back and reassert ourselves in the world basketball. It’s about damn time that we should beat this pesky and sweet shooting Koreans. With 20,000 plus screaming fans supporting our players inside the Mall of Asia , the family’s moral support, and the 90 million plus rooting and praying to beat the Koreans, this is the best opportunity to finally exorcise the demons against the Koreans.

photo credit: FIBA Asia/Nuki Sabio

Korea was ahead 28-23 when Douthit got injured halfway through the second quarter. Wow, can you believe that? Our main man in the middle was gone! I felt right there that our chances of winning got diminished.

But the players never gave up. Who could forget the daredevil drives of Jason Castro in the opening of third quarter? He is one of the smallest on the court and yet he stands tall amongst them. Ping muscled his way under the rim against taller Koreans to rebound, defend and score. At the end of 3^rd quarter, we’re up by 9 points.

And then it happened. With over four minutes remaining, that Korean player with a tomahawk hairstyle (Lee Seung-Jun) dunked the ball to give the Koreans a one point lead. Oh boy, here we are again! Those demons just won’t go away. Those heartbreaking losses resurfaced again in my head. No, this ain’t happening!

Less than a minute to go, Philippines is up by two.  Jimmy dribbled his way to the left side and shot a three, a form we are too familiar watching in PBA. He nailed it and we’re up by five points. The ensuing play is a blocked of Norwood against a Korean shooter. As the final seconds ticked away, people start hugging one another as tears flows. Coach Chot sobs at the sidelines, some players jumped in joy; others knelt down savoring the liberation of winning against South Korea.

The historical importance of the win cannot be overemphasized. For decades, we are the kings of Asia. From 1936 to 1972, we represented Asia in Olympic basketball except for one. Since then, we’ve never been in the world.

We’ve never beaten South Korea in international competition since 1985, a 28 long years of fruitless endeavor. As a hoops mad nation, getting over the hump is a welcome relief everyone relishes. Heartbreaks includes 2011 FIBA Asia Championship, 2010 Asian Games, 2009 FIBA Asia Championship, 2002 Asian Games, 1998 Asian Games, 1987 Asian Basketball Confederation Championship, and 1986 Asian Games.

Source: Grantland,GMA News and Interaksyon

Miss Supranational – Mutya Datul

Okay, I know this title is not as popular and prominent as the other three beauty pageants, Miss World, Miss Universe and Miss International but then again when you bested 82 other beauties from different nationalities, it’s something to be proud of.

Never heard or seen her? Here is a glimpse of her beauty. Ganda talaga ng lahi natin ano po? :-) 

photos c/o Raymond Saldana.

Source: Rappler

GDP, best in Asia

Philippines 2^nd quarter 2013 GDP grew by 7.5%. Several highlights on this glowing numbers are:

Source:NSCB

a.    It beat the analysts median forecast of 7.2%.

b.    This is the 4^th consecutive quarter that the GDP expanded by at least 7%.

c.    The highest among ASEAN nations.

d.    It matched China’s GDP, highest in Asia.

e.    The composition of the growth points towards the process of rebalancing; from being a consumption led economy to investment-led and industrialized.

It wasn’t too long ago when Philippines was tagged as the “sick man” of Asia. Today, analysts and investors alike are singing a different tune. Philippines is Asia’s newest bright spot. Philippines is Asia’s Rising Economic Star. The strong man of Asia. Philippines is the investors’ darling in Asia, its economy shines amid a backdrop of slower growth in the global economy. 

HSBC predicted Philippines to become the 16^th largest economy by 2050 with an average growth of 7% until 2050.

Source: NEDA, Inquirer

PSE, 3^rd Best Performing Stock Market

Paris-based World Federation of Exchanges (WFE) recognized Philippine Stock Exchange as the 3^rd best performing stock for the year 2012. It follows Turkey and Thailand respectively.

The PSE was recognized after it gained 38.9% in market capitalization. The value turnover increased by 25.3% in 2012, 3^rd best in the world. PSE landed fourth in the expansion of number of trades while it registered fifth highest increase in broader market index.

In 2012, our PSEi recorded 33% gain, enough to land the 10^th spot lead by Venezuela’s Index which increased by a whopping 303%.

In 2013, the PSEi still fairs well among the best performing stock market as it gains 20% as of Apr 2013 to land at fifth spot, this time lead by Japan with a gain of 34% year to date.

Source: GMA News, Business Insider, Rediff

Interest Rates at Historic Low

Current interest rate is at 3.5%, the lowest rate in history since data were compiled.

Recently, Bangko Sentral ng Pilipinas kept the interest rate at 3.5% to support GDP growth.

The interest rate refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate.

Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.

Source: BSP,Trading Economics, Bloomberg

Now, A Lender to IMF

For 45 long years, we are an IMF borrower. In 2006, we were able to pay our obligations. This year, we are extending a $1 billion loan to IMF.

We’ve been the recipient of these IMF loans before, it’s time that we turn back the favor and help struggling countries.

Our GIR is at historic levels as dollars from OFWs and BPOs sector increase the net dollar inflow of our country.

First Ever Investment Grade

Philippines never achieved an Investment Grade from the three major credit agencies. Moody’s and S&P started covering Philippines in 1993 while Fitch in 1999. Since these three major credit agencies started covering Philippines credit, we’d never passed the speculative grade. The highest grade we got was a notch below the investment grade.

Until 2013 came. Last March this year, Fitch gave Philippines its first ever investment grade rating. S&P followed suit in May. Moody’s team is expected to follow suit.

Source:Philstar

An investment grade rating would lower debt interest payments, open more credit avenues, and give the country more foreign investments.

Source:SEPO, PhilStar

Plan the Trade and Trade the Plan

http://www.flickr.com/photos/47381479@N04/4357228667

Buy a stock in accordance of your trading plan. For example, I have in my portfolio a buy below price and I do not buy a stock if it goes above the buy below price because it may expose me to a riskier position. Being conservative has its advantage like having a higher percentage of profit than buying a stock doing cost averaging.

Well, if some of the stocks you are following are below your buy below price, then I am sure you have used up all your funds in your broker account to buy these stocks. What if all your stocks are all above the buy below price and you still have extra cash to use, what are you going to do? The logical thing to do is to wait for the stocks to go down below your buy below price because these stocks will not go up forever. There will be occasional times that they will dip which will present a buying opportunity for you. Don’t chase a rising stock because it might burn you and end up with losing a portion of capital.

One of the most difficult things to do is to sell with a loss. Well, if you are buying blue chips, cut loss is almost impossible except during extraordinary events where the fundamentals of the company significantly changes.

With regards to second liner and third liner stocks, you must stick to your trading plan. Always moderate your greed and lock in the profits. There will always be plenty of opportunity around. If today your stock did not do well there will always be another day. Sometimes out of frustration we sell our stocks and let the emotions run and managed us. That is very dangerous in stock market! Again, you must stick to your trading plan. Plan your trade and trade your plan.

http://www.flickr.com/photos/12549623@N00/4240056336

The loss can be significant to second and third liner stocks and that is very hard to accept. It’s as if you want to smash the computer because of the swelling emotion associated with defeat. I know it’s very hard to keep our emotions from getting us. It’s just human nature. However one must use intelligence and cut the losses if necessary and in so doing, one must exercise laser like focus on the trading plan. It’s the key, everything else is just trivial.

Do not buy a stock if you haven’t study its technicals or fundamentals. Practice checking the ticker price intently for movements which may benefit your trading plan. At the end of the day, when you go to the war room you must be equipped with ammunitions and bullets in order to successfully defeat the enemy, otherwise be prepared for an excruciating defeat.

First Time To Buy A Stock

http://www.flickr.com/photos/45846171@N04/6322956631

Somebody asked me how to start buying shares. The questioner doesn’t have that much idea about investing especially stock market. So, how is he going to start buying shares?

Here are the questions asked:

I really don't have much idea about investing but got curious after reading your blog. I'm wondering how to start buying shares then? do i go to the company and ask or do they inform it publicly that they sell them? Lastly, what about the broker? is it necessary? 

For someone who doesn’t have that much time about stock market and doesn’t know the ins and outs of it, I have only one recommendation to you, BUY BLUE CHIP COMPANIES ONLY.

The steps needed to start buying blue chip companies similar to what I have done when I started are below:

1.     1. Email COL at helpdesk@citiseconline.com and submit required documents

Here is my email when I asked COL years ago.

hello po.

I a am an ofw who wants to invest in the stock market. can you please tell me the procedures on how to do this. this is my first time to actually invest just in case.

thanks randy

COL’s Customer Service replied immediately and asked me to submit all the requirements he listed in the email. After submitting all the required documents to their office in Ortigas, I waited for the approval of my application. When COL’s Customer Relations Officer told me that my account is approved and ready for funding, I jumped in joy! I forwarded the message to my wife saying “Yahooo!” This is it I told myself. I’m really excited to deposit some money in COLs account and start this journey to financial freedom.

You will receive a Username and Password from COL upon approval.

2.    Deposit money in COL’s account

Hi Shan,

 I just transferred 30,000 to Citiseconline.com BPI account yesterday.

Let me know once you received it.

 Thanks.

I deposited the money in COL’s bank account. Guys, the money you are depositing in COL Financial’s bank accounts belongs to you not COL. You can use that money to buy shares of stocks.

When I remit money to COL’s bank account accounts, the maximum it will take to be credited in my COL’s account is two to three days.

3.    Buy blue chip stocks

When you login in colfinancial.com using your username and password and you saw that the deposit you made is now credited, you can use your laptop or any device that has internet to buy blue chip companies. I buy or sell a stock using internet only.

In fact, I never called COL. I used email in all my correspondences to them since I am an OFW.

Stock Market Strategy and Technical Analysis

I just received an e-mail from Apple Grace asking so many things about stock market. While I cannot asnwer all of the questions in one article because explaining the answers would require a lot of detailed pages and it may confuse you rather than enlightened. 

Here you go.

I came across your blog and i really hope you can help me "test the stock market waters".

 I have been working outside the country since 2007 and i just started to save a little for myself on august 2011. I have signed up with citiseconline under EIP Program. This is long term investing,right? Somehow, I understand how it works. However, I want to be "risky" and try trading but then, i am scared to begin.

Yung takot na namamayani pgdating sa pagsuong sa lugar na hindi natin kabisado ay normal lamang. Actually, karamihan sa atin ay natatakot lumabas sa ating mga comfort zone kung kayat nawawala ang oportunidad na dumarating sa atin. Kapag dumating ang oportunidad sa iyo, huwag mo nang bitiwan o pakawalan dahil hindi na ito babalik pa.

Sa stock market ganoon din ang proseso. Karamihan sa atin ay natatakot na maging risky dahil baka maubos lamang ang perang ating pinaghirapan.Kaya’t ang advise sa atin ay maging longterm investor para hindi ka na magisip pa kung bababa o tataas ang stock market. Bili ka lang ng blue chip companies then, hintayin mo na ang retirement at siguradong lalaki iyon at kasya sa iyong planong around the world travel kapag may edad ka na.

Ako naman, ang aking strategy sa stock market ay diversified strategy. Minsan, bumibili ako ng stocks kapag pababa ng pababa tulad ng nangyari sa Megaworld(MEG) last December 2011 dahil lang sa isang theory na crowded na ang property business.Well, sa ngayon balik siya sa dati at siyempre kumikita ako.(contrarian investor)

Pangalawa, binili ko rin yung Century Properties (CPG) stocks kahit bago lamang siya dahil nakabili kami ng aking asawa ng munting bahay mula sa kanila. I know how their marketing works and their property portfolios. So I bought it even though it is a very risky move on my part and that I may very well lose all my money with them. Kakalista lamang niya sa stock market last year through backdoor listing and nobody knows how it will perform in the near future since there are no financial statements yet. (Guerilla investor and taking risk).

Pangatlo, may stock ako sa FPH which is masyadong mabagal ang takbo. Ito naman yung stocks ko na mura as far as P/E ratio is concerned. Also ito yung stock ko na pangmatagalan dahil matatag ito, yung business which is energy and power is very defensive and not cyclical. Dividends are good also. (value investor).

 I will not set aside my EIP. I will trade small amounts while maintaining my EIP investments. I just do not know how it works. I do not know even how to project stocks, I do not know how to anticipate if it will fall down or plunge deeper or somehow, if it can recover.

Kung mahilig kang magbasa ng balita sa internet tungkol sa stock market, marami kang mababasa kung tataas o hindi ang stock market. Nagkalat ang mga kumpare at kumare ni Madam Auring.Maraming nanghuhula kung tataas ba o hindi ang stock market.

Technical analysis will help if a stock market will go down or up but it is not absolute.NOBODY can predict if a stock market will go down or up otherwise, siya na ang pinakamayamang tao sa Pilipinas dahil pwede siyang mangutang sa bangko, buy the stock and then sell at a profit kung sigurado siya na tataas ang stock market.

Fundamental analysis also is a guide in predicting the stock market. Macroeconomic factors like OFW remittances, consumer spending, interest rates, inflation, PPP, business environment, political settings and regulations will all affect in one way or another the stock market. Ang ating bansa maganda ang fundamentals kung kayat madaming mga foreigners ang nagiinvest sa atin. Tingnan mo ang ating stock market, it is the best perfoming stock market in the world sa taong ito. We need to give the credit where it is due.

Basically, what i understand is that, you will buy stocks then you will sell it if it goes up. Anticipation is what i do not understand. Will you help me? Also, can you suggest companies that i can buy stocks from that are not so risky? Trading is very risky while investing is not. Investing is synonymous to the adage "slowly but surely". But I wanna try trading. I hope you can help me understand the basic fundamentals of trading and how can I trade with minimal risk as a first timer.

Ok. My favorite technical analsysis that I used are MACD and RSI. Madaming technical analysis ang gamit ng mga traders pero itong dalawang ito ang kadalasang ginagamit sa pagaanalisa ng trend sa stock market. Halimbawa, yung RSI, kapag 30 or below na ito ibig sabihin, oversold na ito. Tingnan mo yung RSI chart sa baba, naging less than 30 ito kung kaya bili na ako rito tapos benta after a few days. Kapag nakita ko ito, binibili ko yung stock dahil sooner babalik din ito sa kanyang dating range. Kapag 70 or more naman ito, overbought na, kapag nakita ko ito, antabay na ako sa preso nito araw-araw. Habang tumataas pa, hindi ko muna ibebenta pero oras na bumaba ito, sell na.

Sa MACD naman, ang titingnan ko ay yung kulay blue.Kapag yung kulay blue ay pumaitaas sa kulay yellow(Minsan red yan), magandang senyales yan. Ibig sabihin antabay ka na kung tataas pa ito. Kapag yung kulay yellow naman ang pumaitaas sa kulay red na linya, medyo maging alerto ka na dahil baka bumaba na ang presyo ng stock mo.

Alam kong hindi ko nasagot lahat ng katanungan mo. Pipilitin kong ipaliwanag sa pinakasimpleng pamamaraan ang mga technical analysis sa itaas sa blog na ito. O kaya naman ay pumunta ka sa OFW Investor para sa iba pang katanungan.