It’s hard not to get emotional when it comes to investing, especially during inflation when our purchasing power shrinks even more. Money we invest can easily go to food, rent, transportation or entertainment instead. News about rising prices left and right, the peso devaluation, and slow down of GDP can make someone investing in mutual funds and/or variable insurance products worry about the future.
What will happen to the money I invested? Should I switch funds? Should I pull out my funds and if yes, when?
Before we make any crucial decisions, it’s important to listen to what the experts have to say. Be careful that you do not make economic news as an excuse not to save and invest. This is an even more expensive mistake to make that can impact your family’s future for a long time.
Market Outlook: What to Expect for the rest of 2018 and 2019
In a recent forum, Michael D. Enriquez, Chief Investments Officer of Sun Life Financial – Philippines presented an overview of current market drivers. For the regular investor like myself, the message is clear. The Philippines is investing and building for the future. We will feel the brunt and pains of importing and investing in capital goods necessary for this growth.
Did you know? If you invest in mutual funds, you are essentially investing and contributing in the nation’s overall economic growth. Give yourself a pat on the back if you invest and if you are not yet investing, maybe this is another reason why you should.
Of course, there are factors like weather disturbances, trade wars, oil supply etc. that effect our economic status in the short term. The bigger picture to look at is how the Philippine economy can begin to stabilize by 2019. The forecast inflation rate for 2019 is 4.1% and a GDP of 6.6%.
Watch the full recording of the Market Outlook by Sun Life Philippines
Keep Calm and Keep Invested
True the stock market index is low and this may have potentially lowered the value of your mutual fund as a result. Take this as an opportunity and as the right time to accumulate investments in cheap level. Warren Buffett has a saying about the stock market and investing in general: “Be fearful when others are greedy and greedy when others are fearful.”
Sun Life Chief Investments Officer, Michael Enriquez recommends the same strategy. As an investor, it is ideal to enter the market when it is cheap versus chasing the market when it is higher.
Let’s stay focused and continue to take our positions now and not be overwhelmed by the current movements.
How to Start Investing for 2019
Did you know? Php 1,000 is all it takes to start investing now. Sun Life continues to promote financial inclusion and now offers this low minimum investment rate. With Php 1,000 you can start investing in a fund that fits your financial and risk profile. These funds include government securities, bond, balanced, Philippine Stock Index, and Philippine Equity funds.
This is a huge leap from so many years ago when investing was not as accessible to ordinary Filipinos. We still have a long way to go when it comes to financial inclusion and I hope that other financial institutions and companies promote the same in 2019.
Are you on your way to reaching your savings and investing goals for 2018? There’s still over 2 months left before 2019 and that’s a lot of time to still make a difference! Happy saving and investing everybody 🙂
