First Metro Asset Management Inc

WHEN IS TOO MUCH CASH LYING AROUND?

9:30am  Wednesday    Philippine Stock Exchange Index  2593.52

I am struggling with the other kind of fear.  When we speak of fear and greed in markets, greed normally connotes that you are buying stocks with abandon because you are sure that you will make a lot of money.  On the other hand, fear implies that you are selling your portfolio without consideration for value because you are afraid that you will lose everything.  It takes a different sort to move against psychology like this, and that is why we have great investors like Franklin Templeton and John D. Rockefeller who gave substance to their word when they said “buy when there is blood on the streets,” and we all know they made tons of money.  The other side of this adage is – “when things look great, it is too late.” Read more

WHERE DOES THE TIDE FLOW?

1:30pm Monday   20 July 2009   Philippine Stock Exchange index  2587.91  (+1.33%)

Markets in Asia continue to surge with the Hang Seng and the KOSPI indices up an identical 2.38% at the mid day close.  Philippine stocks are undoubtedly very strong.  Buyers are lined up to pick up anything that’s cheap.  I was impressed today by the showing of all headline stocks.

Telcos TEL (PLDT) and GLO (Globetelecom) both rose in spite of news over the weekend that expiry dates of pre-paid load would be extended to double its effective days.  I think the extension would hardly dent earnings since it does not alter pattern of cellphone usage. Read more

TEN REASONS TO SET UP A FAMI MONTHLY INVESTMENT PROGRAM

A Monthly Investment Program is a facility that FAMI will set up in your company whereby your employees can voluntarily request your company to make a salary deduction and forward these deductions to FAMI to be invested in a “Save and Learn” mutual fund of the employee’s choice.  This way employees enjoy hassle-free saving on a regular basis, plus have their savings gain from the power of mutual fund long-term value growth. Read more

WHICH WAY IS NORTH?

4:00pm  Tuesday   14 July 2009    Philippine Stock Exchange Index    2492.3 (-0.36%)

How would you describe the sentiment in the market when people buy it up strongly at the open, sell it down strongly in mid-session bringing it back to yesterday’s levels, and then buy it up again to close around 9 points above yesterday’s close.  Among headline stocks, TEL, BPI, FPH, and ALI were the strongest.  MBT and AC were in there very strong at the open but both invited profit taking at mid-session. Read more

SHOULD YOU JOIN THE MONTHLY INVESTMENT PROGRAM?

If your company has set up, together with FAMI, a  Monthly Investment Program (MIP), you should know that this MIP is a voluntary salary savings program that can help you save in a disciplined and automatic way.  This MIP involves a voluntary salary deduction Read more

WHO REALLY COUNTS THE MONEY?

2:30pm  Monday  13 July 2009  Philippine Stock Exchange Index 2483.39 (-0.15%)

Across all markets in Asia, stocks are down.  As of this writing, the MSCI Asia Pacific Index had plunged to an eight-week low of 98.57 from a recent high of 105.17 in mid June on speculation a U.S. economic recovery will be delayed.  From where I sit, it looks like markets in this region are in for an anemic couple of weeks with analysts suggesting that emerging markets have grown expensive. Read more

DO BALLOONS FLY FOREVER?

3:00pm Thursday  9 July 2009   Philippine Stock Exchange Index closed at 2473.85 (+0.48%)

Meralco (MER) continues to zoom.  In some people’s minds, they think this will never stop.  I guess some people had seen balloons fly and think they would float endlessly into space.  I used to think so myself… when I was 5 years old.

The only thing that I am sure of aside from the fact that there are no balloons in outer space is that this market will not run away from us.  The other thing that I’m sure of is that most investors have raised their strategic allocation for stocks.  Just like me, many are simply trying to time the market.  Seasonally, July and August are slow months because of school holidays in Hong Kong and the western hemisphere.  Psychologically, people do not want to do anything except plan their vacations.  The market will appear to be trendless in the coming days. Read more

SAFE AT LAST

For those persons whose company or school has participated in the FAMI Monthly Investment Program (MIP), here’s an interesting and delightful fictional presentation entitled, “SAFE AT LAST”. Read more

I’M HOLDING MY FINGER IN THE WIND

9:00am   Monday   July 6, 2009     PSEi (Friday close)  –   2431.34   (-0.27%)

It was a long weekend in the U.S. so we will be seeing very little influence from market sentiment in New York.  European markets were mixed on Friday, but they hardly affect our market.  The Hang Seng was marginally up on Friday, but that did not affect our market as well.  We were down 6 points, pretty marginal considering that we were reacting to a 213 point decline in the Dow.

It looks to me that domestic factors will be more of a concern to investors.  The positives are that term yields in the government market has declined around 20 basis points in 10 year maturity.  The short term cash market also looks flushed with the BSP confirming that it is still in an easing mode. Read more

GOING ANYWHERE?

3:00pm   Thursday  2 July 2009   PSEi  –   2438.04 (+0.21)

What can you say when there is nothing going on.  Yes, the Philippine stock index is up 5 points on a very unexciting, uninspiring day.  Stocks traded up at the open simply because Wall Street was up.  After a few minutes,  players sold the market down.  What would have been a 20 point gain was slowly whittled down to 5 and volume was again subdued.  This market is not going anywhere for the time being. Read more

First Metro Asset Management Inc