I don’t know if this story will make it to newspaper dailies tomorrow. What I do know is someone is very bullish on the Philippines.
JP Morgan is a global financial services giant, Wiki says one of the oldest in the world. In May, it was third in the Philippine Stock Exchange’s broker ranking.
Last month, it held its first investor conference in the Philippines since the 1997 Asian financial crisis. Now, it’s saying the key Philippine Stock Market index (PSEi) may reach 4,400 by mid-2008. Reminds me of the “blue skies” foreseen by Association of Securities Analysts of the Philippines (ASAP) president Francisco Liboro. He said in this article that once the market hits 3,700, the sky’s the limit. That means the market will be in uncharted territory.
If you agree with JP Morgan, wait before the market dips a little before adding to your equity fund holdings. Stock analysts believe the market is likely to undergo some correction in the next few days. Buy low, so you can maximize your returns. Then hold on tight. It might not be too late to ride the bull run after all.
It’s increasingly hard to find pessimists these days. If you don’t think the market and the economy will grow well this coming year, do let me know and tell me why. I’m interested in finding “contrarians.” 
So What Chocnut snippet:
What is the PSEi?
It’s the Philippine stock market’s key index, composed of a basket of 29 companies. It used to be called the Phisix. It’s a widely accepted barometer of stock price movements. The composition of the PSEi was modified last year to make sure stocks included in the index meet rigid criteria.
Do not confuse the PSEi with the PSE itself. The PSE is a private organization that ensures an efficient market for the buying and selling of shares, “efficient” being a relative term of course, in case you are going to compare the PSE with the Dow Jones or the NASDAQ.
Other business articles for those who want to be in the know:
Gov’t proposes P1.227T budget for 2008
Government is the country’s biggest “economic entity.” Its budget is a major factor in how the economy moves. I used to pore over national government budget documents at the DBM. Lots of stories there.
(UPDATE) Shares close higher on bargain hunting
Mining boom amid buoyant metals prices
This article gives a very good situationer on the mining industry.
BSP siphons off P200B in excess liquidity
Can you imagine that kind of money “sloshing” all over our financial system? Scary.
Money changer, 4 others nabbed for duping balikbayan
Practical note if you intend to travel to the Philippines with dollars in your pockets, or you know someone who will. Small money changers may offer better rates to lure you. Be sure you are not alone, even if you feel you can trust your friendly neighborhood changer and be sure they count the money well in front of you. Uhh…You know what? Go for more secure establishments instead.
June 13th, 2007 at 3:30 pm
salve:
I don’t think there is one set of information that will expand everybody’s investment options. It’s really what you do with the information. I’m not a good stock picker so stock info is not useful to me. But I know someone who is very good at stock picking. He can outperform even the best mutual fund using public info available to everybody.
I’m better at deal making than stock picking. I need a different set of info like where to find people with lots of real estate but short in cash.
A friend of mine is very good at startups and using OPM. He needs info on business opportunities and where to find people who will invest in his business.
It’s just learning and doing what you do best. The more you do it, the better you become. You can’t outperform the market by investing in off the shelf products. It’s your value added that makes the difference. I hope I answered your question.
June 13th, 2007 at 2:41 pm
Really nice lending options pinoyinvestor has access to! Must be direct loans to companies or individuals to make 20% per annum. I even recall it’s 36% per annum for loans to relatives in the province who run ricemills, but I only commit to them on limited capital and terms, pinoyinv’s more comfty than me on stuff like this
little wonder you like to go into banking, you know your “margins” and “spreads” quite well.
In my own comfy zone of institutional investments - stocks, bonds, funds - 25% increase in PSEi from 3,500 to 4,400 is optimistic and already something to look forward to. I’ll not take a bullish / contrarian stance by just projecting 16% yield one year forward, or 4,100. But stocks are a nice vote of confidence in the fortunes of emerging economies, whether RP, ASEAN, China, India, etc. We live in interesting times so let’s just hope for the best!
June 13th, 2007 at 2:30 pm
hi edzmaya, thank you for the complement
lemme know when your blog is up. The more the merrier!
June 13th, 2007 at 2:28 pm
hi pinoy investor, watching how your mind works is a revelation of sorts :-). How to get at those investment options should be my next question. I was commenting on a CEO blog run by Reuters top honcho Tom Glocer that one of the weaknesses of small, inefficient economies like the Philippines is the difficulty by small guys to have access to information that in other markets are available to everyone. These information I am talking about are the kind that would allow investment overperformance. Journalists are supposed to help in this situation by publishing information that would empower everyone in their personal investing, their own businesses, even in their political decisions.
So what’s the point of my comment on your comment? I guess this is my technical way of whining, meaning sometimes I feel that the job is just to hard, haha. So help us out..how can we expand our investment options the way you do?
June 13th, 2007 at 12:03 pm
hi salve!
i have been reading your blog during office breaks and i find it fun and informative at the same time.
the other day, i started exploring on the possibility of having a blog too. just so that i might be able to share whatever it is i might stumble upon in my quest for financial freedom.
cheers!