I have been noticing a lot of newbie (young in age, I mean) investors today acting as if they were trading and investing for the past two to three decades already.
Amidst the hallucinistic bull run, investors mix themselves up with seasoned active traders. They start to sound like they are rushing towards the finish lines of their lives.
This is especially true for those who started out investing just recently with a conviction that they will stick to their long-term investing strategies.
Just a few drop in stock prices, you will hear these:
“Pare, I’m gonna sell na my SMPH na this week, pare…”
“When kaya will the market correction happen ba? Yaahh…It’s so scary, baka I will lose na my money. Pa’no na my nightlife every weekend sa BGC. It’s so kakaloka!!”
Calm down, dudes and mare‘s. It’s not the end of…..Katipunan or Taft.
What is Market Correction?
Investopedia defines market correction as,
A reverse movement, usually negative, of at least 10% in stock, bond, commodity, or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset. A correction has a shorter duration than a bear market or a recession, but it can be a precursor to either.
With that said, young wealth-creators must take heed the advice of veteran investors. A market correction should be an opportunity for you to buy more leading and solid companies.
Don’t panic. Just do the Harlem Shake whatever happens.
It’s Just A Roller Coaster Ride
Friend (pardon my networking marketing lingo again), the Philippine economy is just emerging like Optimus Prime rising from the ground. Foreign investors are bullish in our fundamentals. Inflation and interest rates are low and will continue to do so for the rest of the year.
You were advised to keep on buying great companies for the long haul. You committed to be looking at decades of continuous monthly investing regardless of what happens. But when you hear about the rattling of seasoned traders, you begin to panic on the steering wheel.
You are still young. Be gentle to yourself, to your pocket, and to your portfolio.
This is just a roller coaster ride.
Maybe you need some Bonamine?
Here’s the summarized 2013 Fundamental Market Outlook presentation of April Lynn Tan, VP and Head of Research of COL Financial to make you feel better:
So, is the market correction happening now? I don’t know. But I’ll just enjoy the bumpy ride. Anytime is the best time to invest.
Correct me if I’m wrong.
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P.S. 1. The Angat Pilipinas Coalition for Financial Literacy and OFW UsapangPiso Forum will be conducting its first ever webinar in 2013 entitled “Creating Wealth – Smart Personal Finance Habits for OFW’s” on February 28, 2013 at 3pm (Philippine time). The webinar will feature my fellow blogger and personal finance advocate Fitz Villafuerte and he will discuss about how one can spend less than what he earns, being frugal and saving money, finding ways to earn more income, learning more about investing, and paying it forward and giving back. And by the way, the webinar is also open to non-OFW’s. Register here now!
P.S. 2. OFW’s based in Dubai, UAE and Muscat, Oman will get to experience the passion and wisdom of personal finance guru Randell Tiongson this coming March. You may get in touch with me if you would like to attend the coffee table sessions with Randell right after the Ayala Land events so we can coordinate for a slot. You may send an e-mail to email@example.com. Kindly indicate your full name and mobile number in your email.
P.S. 3. Four years ago, I joined the TrulyRichClub. It was one of the best decisions of my life. Founded by Bo Sanchez, its purpose is to “help good people become rich”. Because of the guidance I get from the Club, I’m now investing in the Stock Market (and mutual funds, bonds, UITF’s) each month! It’s amazing how I’m personally growing in my finances. I’m inviting you to join the Club too. If you’re interested, then join the TrulyRichClub NOW! And email me at firstname.lastname@example.org if you have any questions.