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 14th, 2007 at 10:46 am
psei potential rise of 20% may be small but if you trade often and get lucky the compounding daily net gain can be tremendous. say starting with P250000 dividing it into 5 buy transactions at P50000 each and sell the next day with only 1% net profit each. you rollover the proceeds and buy/sell again daily for a year. assuming you never lose a single trade, in 1 year your capital will increase over 1300% or over P3.4M due to compounding. however i never heard anyone who have accomplished this.
June 14th, 2007 at 9:54 am
haribon:
We don’t do 5-6. In fact we’re getting out of microlending because our collection rate is too low. We’re not getting paid. Our loans usually end up as interest free, pay when able loans. My wife is still that it because she wants to help people. I always remind her we’re not running a charity, we’re running a business.
June 13th, 2007 at 11:58 pm
20% per annum?? hmmmm… for a microfinancing(lending) bussiness like 5-6, you can get 20% in two months which means 120% at least in a year!! but i let that away to those no-conscience sharks!!
still, i play their game and gain 3.5% for my money in a month that equates to 42% per annum.
no way PSEi can beat that!!
but were talking micro here, meaning few hundred thousand bucks are involve. if you have millions, it will be really hard to spread into so many lendee as your collection burden gets heavy on you.
i shall gain my million/s soon and i have to diversify. longterm goal is to continue gaining much from my microlending and spend more bucks on learning to ride the highly volatile market (stocks, etc) and real estate maybe.
time is of the essence here, we might miss the window of opportunity which is open now. the next bull-run might be long time to come and if we don’t ride the present one, we might not learn how to tame it to work for our gains. there’s nothing to loose, just spare some money now on education. it pays in the long run.
happy investing to all !!
June 13th, 2007 at 6:25 pm
[...] Money Smarts: Key index seen at 4,400 [...]
June 13th, 2007 at 4:48 pm
hachiko:
Microlending is very risky and collection is a headache. Our appliances at home are payments in kind by debtors. That’s how we reduce risk by mixing household and business assets.
Our cars are from car trading. We use them while unsold. Our food, toiletry and consumables are from direct selling. Those are inventories stocked in our house. Our house is part of our real estate portfolio. I would sell it if I can buy another house in our neighborhood at big discount. I bought our house at 35% discount. Our business motto is if you can’t sell them, use them. (thank god my wife is no longer in the RTW business or else we’ll all be wearing factory surplus)
btw, 20% is not micro or direct lending. Microlending is 36-60%