Did you love the stock market in 2016?
I did. Biggest reason? It went on “sale” the past
few months, selling us great companies at very low prices.
And we’re very excited for 2017 for the same
reason: Because we believe that this “Sale Season”
will last a little longer (Perhaps four more months? Six
more?). The longer it stays depressed, the better for us
But we believe the Philippine economic story is still
intact, no matter what will happen in 2017.
Here are some of the reasons given by Caylum
Institute (the only stock trading school we’ll ever
recommend) on why we remain believers in the Philippine
1. The Philippine economy is transitioning from
consumption to investment-led growth. P3.3 Trillion
of savings are in the banks, waiting to be used for
investment. (And the TrulyRichClub is moving people to
make this transition.)
2. If the infrastructure projects of the DU30
administration is executed properly, this will have a
massive impact on our economy. Note that we also have
a liquid banking system that can finance these projects.
3. The Philippine labor costs are still competitive
versus the region—attracting more investments. The
BPOs (call centers, etc.) are still strong despite calls of
Trump to bring them back to America—because they
can’t afford it. They pay $2/hour here vs. $10/hour over
4. But the biggest reason is our demographic sweet
spot: Our average age is 24. In contrast, the average age
in Japan is 47. This is the reason why Japan’s economy has
been stagnant for the past 20 years. But any country that
has a majority of its young population entering the work
force will bring that country into its most progressive
years. That’s us!
There are a few other reasons, but you can read
more about them in our next issues.
The most important thing is to remain faithful to
your investment program. Keep buying the SAM Stocks
at this beautiful “extended” sale season. One day, your
favorite companies will bounce back—so enjoy the sale
while it’s there.
— Bo Sanchez