The Philippine stock market in 2018 can be described as volatile. There were a lot of factors in play as to why the performance last year was just unfortunate. Other than the global events that have affected the economy, there were domestic factors that lead to the market dropping like heavy foreign net selling, rising inflation, and the local political climate.
However, for this year, there are predictions that the Philippine stock market will reach up 8,400 to 8,800 level by the end of the year. Which means that from dropping to the bear market territory last year, most sectors will be in the green in 2019. In fact, led by the industrial sector, it has already climbed 2.14% in January.
This is the perfect time to consider investing in the stock market again and take advantage of the improved performance. Here we list down how to invest in the stock market in the Philippinesto get good returns.
Do your research
Right now, the top companies that are consistently performing well are:
- Ayala Land (ALI)
- Banco de Oro (BDO)
- Jollibee (JFC)
- Ayala Corp (AC)
- SM Investments (SM)
- SM Prime Holdings (SMPH)
However, there are companies not mentioned here which also yield good returns. It may not be quite as big as these six, but you are sure that you would earn from investing in them. So before you decide which company stocks to buy, make sure to do your homework. Research companies which has the potential to grow your money. You can consider investing in more than one company which shows promise, and then earning significantly from them, instead of choosing just one.
In any case, you can always choose the top performers in the Philippine Stock Exchange. Just make sure that you are willing to shell out quite a bit of money too.
Know your risk profile
Because the market is truly unpredictable, there is no assurance that you will continue earning significantly at any given time. There are high risk companies which has the potential to earn really high, but can also lose a lot of money when it is a bad year for the market.
You should consult with a financial adviser or brokerage firms and take a risk profile exam to know whether you are a
Diversify your portfolio
Putting all your money in stocks is the worst decision to make. In the first place, you should only decide to invest if you have money to make the investment. It should not just come from your savings, but a steady flow of income must also be considered. When you withdraw money to make an investment, you must still have emergency funds and savings kept safe in a bank. This avoids prematurely selling your shares because you need the money.
The Philippine stock market is showing that it is resilient. For the everyday worker, this is a chance to grow their money and earn from the market’s upward trend.