Top 10 Countries Ranked According to GDP (2011)

May 24, 2012 Leave a comment


I just want to compare the top 10 world largest economies GDP vs. the Philippine GDP. Of course, it’s a no contest that US is the world biggest economies followed by China.

Below is the list of Top 10 Countries Rank According to their GDP (2011).

1. United States of America  (GDP = 15.1 Trillion USD)

2. China (GDP = 7.3 Trillion USD)

3. Japan (GDP = 5.9 Trillion USD)

4. Germany (GDP = 3.6 Trillion GDP)

5. France (GDP= 2.8 Trillion USD)

6. Brazil (GDP= 2.5 Trillion USD)

7. United Kingdom (GDP= 2.4 Trillion USD)

8. Italy (GDP= 2.2 Trillion USD)

9. Russia (GDP= 1.9 Trillion USD)

10. Canada (GDP = 1.7 Trillion USD)

The Philippines with a GDP of 213.1 Billion USD last 2011 was ranked number 46.

source : IMF, Wikipedia

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Investing in Philippine Real Estate

May 23, 2012 Leave a comment


Real Estate has been one of the most traditional and good investment since, it appreciates over time. In the Philippines, this kind of investment is well known to most Filipinos.

Before I worked abroad, I have bought some properties in Cavite, Philippines. Right now, I was happy with the value of my properties worth, and of course with the monthly rental income it generates.

Actually, there were shopping malls built near my properties, and this bring a plus factor to appreciates its value fast.

In the Philippines, the growth of real estate is towards the south especially in the provinces of Cavite, Laguna, Rizal and Batangas areas. Prices of land on these provinces are increasing and a lot of companies are establishing their manufacturing facilities in these areas.

Actually, it needs due diligence in acquiring real estate property. Make sure that its location has a proper infrastructure like roads, utility services, a nearby supermarket and church. I guess you don’t want to live in uncivilized place so before buying, at least consider these things.

The only problem I see on this kind of investment is its “Liquidity”. If you want some cash and, you want to sell your land (or house and lot), it takes more time to liquidate. Unlike stocks and bonds securities that you could easily cash out, most of the time it takes a year to sell a real estate property.

I have heard a lot of stories about a properties being sold at a very low price (sometimes below it’s purchase value). To prevent this situation, it is only wise to have enough cash park as an emergency.

I was not good when it comes to Real Estate investing, but I found myself overweight on this kind of  investment.

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Quotes:

Don’t wait to buy land, buy land and wait. – Will Rogers

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Mayday.. Mayday.. Sell In May

May 15, 2012 1 Comment


May 15, 2012, I was in shocked when I see my stock portfolio down by almost 10% in just 2 weeks time.

In stock market there is a popular saying “Sell in May and go away” in which some traders adhere to by selling their stock position in May.

Is the month of May a cursed month for the stock market that selling most of your stock position is a safe refuge? I think there might are some factors that is causing the market to behave in such a bearish manner.

I am not a certified Financial Analysis but these are my views why the Philippine Stock Market is weak in May.

  1. The current macro economic events in Europe like the news of Greece exit to Euro plays significant role in the current sell-off that we are seeing right now. I guess every equity market in the world could not be spared by this macro events.
  1. The standoff in the Panatag shoal between China and Philippines could escalate into an armed hostility (I hope it will not go there.) This tension will somehow cause the market to react negatively.
  1. After the PSE index reach the 5300 and the market was up by more than 20% year to date, many analysts were expecting that it is already ripe for profit taking and a correction is inevitable.
  1. The month of June is coming (start of school), I think some retail investors want to take some profits to pay for the school expenses.
  1. IPO’s of big companies like GT Capital and East West Bank is somehow eating up liquidity from index stocks. This will divert the flow of funds away from the index stocks. (But I think this will only affect the market on the short term.)

So, should you invest or sell in May? The decision to invest or sell in May is up to every investor. Investors should carefully weigh in the pros and cons of their investment choice before jumping into it.

No one can predict the depth of the market corrections that we are seeing right now, but I still believe that stock with good fundamentals and sustainable growth will always emerge.

As for me, the Philippine growth story still looks promising. With the PPP (Public Private Partnership) as the driver of the market to move higher, and backed by robust and strong OFW remittance.

I think it’s more fun and profitable to invest in the Philippines.

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