1. Banks are good for safekeeping. Keep your cash in banks for your everyday expenses.
2. It is always good to DIVERSIFY esp. when times are uncertain. This way, you mitigate the risks of putting everything in one basket. There are many ways to spread your wealth. Consider mutual funds of BPI Investment Management, Inc. (BIMI). BIMI is the largest mutual fund company in the country as it manages ALFM and PAMI funds. Their bond fund products are doing well these days. A net return of 7% in 3 years is good in times like these.
3. Remember, there is always an inverse relationship between stocks and bonds. While both are affected by interest rates and inflation rates, history has shown that when stocks are down, the bonds are up and vice versa. It’s time to switch to bonds or sell off your stocks if your patience is running out.
4. Put some of your cash in global equities. The thing with dollar investing is that the reward can be twofold. One, from the exchange rate, which you already earned if you bought it at a lower price, and from the fund performance.
5. Still on dollar investing, many of my clients have invested in FAANG in NASDAQ before but these days, they are sliding at an unprecedented level. Some of you might withdraw to avert further losses but consider this as “paper loss”. Apple is still Apple. The same with Microsoft. FAANG is still a good buy as most of them are consumer-driven. It may be overvalued as some pundits may say but over time, looking at the business, they are still relevant.
6. If you have plans to buy real estate, go ahead. Real Estate is Real Estate. Any time you can acquire a property, buy it because the worst time to buy it is when your IDEAL property is no longer available. As a Real Estate Broker, I can guide you based on your real estate requirements. Aboitiz Land, headed by a good friend is worth looking at.
7. Now, some may not believe me or even sneer at this suggestion: Tithing.
The Bible promised that if you tithe, God will bless you in ways that you cannot imagine (Malachi 3:10). I can personally testify that this is true not only during the last 2 years but since I left employment 21 years ago.
God provides He is faithful. This is a testament that I depend on God’s economy and not on man’s economy.
Remember, investing is never guaranteed. No one can predict how it will turn out. There will always be risks. But you cannot ignore the power of compounding. It is the compounding feature that makes your money work hard for you if done right. Again, this is relative.
Investing can be an acquired skill if you know yourself.
Know your investment horizons. Your tolerance for losses. Your timeline. Your goals.
When you know what you want, you can be at peace even at a loss.
More importantly, keep working hard. If you can create multiple income streams, by all means, do it.
In our Maxicare branch, we have people who work full-time, and yet, they can still be active producers, if not top producers in the branch.
Selling is one option. Virtual job is another. The more income you create, you stave off the effects of inflation based on your purchasing power.
The government will not feed your family.
God will help you and will give you the resources you need but faith without action is dead.