Long before 2008 drew to a close, people have started writing off 2009 with words such as “worse than 2008”, “depressing”, “bumpy ride” etc.
Is it then still possible to get out of 2009 with a good investment return or is that out of the question and should we all just try to make as little mistake as possible and aim for a boring year of preserving gains?
Specifically, if you are a 20 to 30-something singleton, what do you plan to do this year about your investments? The conventional wisdom for this age group is not to be afraid to take on some risks because there’s plenty of time to recover, but then again, a few are beginning to think about quite the opposite: why take on risks when you have plenty of time to grow your money?
If you’re a 30 to 40-something with a family to take care of, how do you intend to take care of your funds this year? If you have been investing in mutual funds for the last 10 years and were counting on returns in 2008 or 2009 to fund a child’s education, that’s a major headache.
If you’re in the home stretch at 50 to 60-something, how are you planning to cope in a depressing year? I can’t even begin to imagine how it must be for you.
In general, do you think the death of stocks and financial markets are written in the stars, or do you think this market still have legs to run? What’s your investment strategy for 2009?
26 Responses to “SURVEY: Investment strategy for 2009”
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Pages: « 6 5 4 3 [2] 1 » Show All
January 8th, 2009 at 8:26 am
30-year-old married here. here are my investment strategies:
* add at least 24K to my MFs.
* continue saving 10% of my monthly gross, which is placed in our company’s employee savings plan, which gives me an average of 8% net per annum.
* save more cash in a rural bank’s time deposit
* open a separate retirement account (meron na din kasi ako sa office)
January 8th, 2009 at 7:56 am
stay short..wait for government and prime corporate issues and lock in long term (say five years). That way you get more out of your coupon payments and preserve your principal investment.
January 7th, 2009 at 9:13 pm
The current market is not an investor’s market, it is a trader’s market. Punters dominate, and these people are willing to snatch quick 5-10% gains in a few days’ time.
If your timeframe is 20-30 years ahead, then I don’t see a need to enter now. Better wait for a clear trend to emerge. Currently it is down, so stay out. Once an uptrend resumes, then enter. Bull markets take 5-7 years to unfold, so no harm done if you miss a year or two.
Last year offered a perfect opportunity to snatch up 10 year treasury bonds that were dumped in the secondary market because of the inflation scare. Yields almost reached 12%. But they are hard to get for small investors. The spreads that banks offer compared to market rate are big. Plus the add-on charges eat up the yield.
I bought Manila Water Corp Bond last year. And I plan to use the interest payments from the bond to buy shares of Manila Water every quarter.
I also bought Ayala Corp preferred shares. I also plan to use dividend payments from the preferred to accumulate Ayala Corp shares every quarter.
Those who were able to invest in Tier-2 instruments issued by banks last year can employ the same strategy to buying banking shares.
Now if you feel you must really invest the money in stocks, then consider stocks with high-dividend yields like PLDT, Globe, Piltel, Alaska Milk, Ginebra San Miguel, etc
January 7th, 2009 at 7:32 pm
Well I plan to invest most of my savings in time deposit accounts so I can stay liquid when a great business opportunity arises. I believe in 2009, cash is king.
January 7th, 2009 at 6:56 pm
i mean ..crisis….though plural is crises…