Is the Philippine Stock Market Cheap or Expensive?

cheap or expensive

In the first few weeks of 2013, we have witnessed the record breaking performance of the Philippine Stock Exchange’s main index. Now everyone is wondering, what will happen next?
Is it a good time to invest?

Cheap or expensive

A lot of people are saying that it is no longer a good time to invest because stock prices have gone up and are therefore expensive. However, if you base your investing decisions on the stock price alone, you will never go forward. Imagine if the stock prices are high just like today, you will not invest because you think it’s expensive. On the other hand if it is going down, [Read more…]

Aya’s Christmas Message


Dear Smart Investors,

Let me start off by thanking each and every one of you for making this a fruitful year for us here in Pesos and Sense.

Our online community in Facebook has now reached almost 17,000 likes. Thank you for your active participation in our discussions and for trusting us to answer your personal finance and investment questions.

I would also like to thank everyone who attended our seminar series, “Make Your Money Grow” and “Time Value of Money”. Now more and more Filipinos are being financially literate, on their way to financial freedom.

As a way of giving back to our followers, [Read more…]

Peso Cost Averaging explained

PCAStock prices go up or down because of a lot of factors.
It is affected by the economy, business performance, political situation, and world events.

Stock market traders take advantage of this up and down movements.
They will buy when the prices are low, and sell when the prices are high.
This can happen in a matter of minutes. Mabilisang kita, but it is risky because the buying and selling should be timed exactly. If not, they will lose money.

What if there is a way to invest in the stock market that is steady and safer? Regardless of your age, income, and experience, you can be part of the growth of the Philippine stock market. How? through Peso Cost Averaging.

Peso Cost Averaging is a strategy that long-term investors use to invest in the stock market. It involves investing a fixed amount of money at regular intervals over a long period of time (10- 20 years).You do this regardless of the situation in the market, government, or the rest of the world.

You can master this strategy in 3 simple steps: [Read more…]

Tips on Minimizing Potential Losses

tips on minimizing potential losses

There is no such thing as a risk-free investment. Every investment, legitimate or not, can incur a potential loss and may wipe out your money altogether.

To avoid this from happening, here are some tips to help you minimize potential losses:

1. High Returns = High Risk

If you want an investment that has high returns, you should also be willing to accept high losses as well.Invest according to your risk tolerance.

2. Just because it is earning does not mean it is safe.

At first, people may earn from scams. This way, more victims will be enticed to join. What they do not know is that once they invest, their money will be used to pay off old investors. What will happen if there are no new investors? Even if you are holding a post-dated check, it does not necessarily mean that you will get paid.

3. Invest only what you can afford.

Do not invest if you can’t afford it at this time. Never ever borrow money just so you can invest or risk your child’s education fund in the hope to multiply your cash. You may end up with crippling amounts of debt just because of a wrong investment decision. If you really want to invest, why not get it [Read more…]

4 Things to do When Your Stock Wins

4 things to do when your stock wins

The Philippine Stock Exchange is soaring to record breaking highs.
What do we do next? Reality Check muna:

1. Keep in mind: This will not last forever.

Always remember that the market is cyclical. Nalalaglag din yan. Never assume that these good times will go on and on.

2.Take some profits.

So many people lose money simply by not knowing when to sell. If you have hit your target, sell — then don’t feel bad kung umakyat pa after ka magbenta. Pakitain mo naman yung bumili sa iyo. Please never say “Sayang, I only made 12% [Read more…]

5 Money Management Tips for Christmas

5 money tips

It is Christmas time once again! The favorite holiday of Filipinos. It has been said that the Philippines has the longest Christmas celebration all over the world. As soon as BER-months arrive, we could hear Christmas carols being played. Decorations are being set up in every house.

In line with the Christmas spirit of giving, there comes a long list of inaanaks. Wealso exchange gifts in every Christmas party we attend. After all, Christmas only comes once a year so we might as well enjoy it.

Gift giving is already part of our culture. And there is nothing wrong with that. But Christmas spending [Read more…]

Tama ba ako o Mali?

tama o mali
I have one credit card and I make it a point to pay the full balance on due date. So, last month, my due date was supposed to be Nov. 1. It is a holiday, so syempre sarado ang mga bangko. November 2, holiday ulit. Tapos Sabado at Linggo, wala ring pasok. So, come November 5, Monday, I paid my bill in full.
Got my latest statement today and saw that they were charging me late fees. I called the card’s helpdesk and asked: “Why are you charging me late fees and financing charges?”


Helpdesk: “Sir, late po kayo nagbayad.”


Me: “According to your statement here and I quote: ‘If your Payment Due Date falls on a Saturday, Sunday or “National” Holiday, payment due date is automatically moved to the next business day.’


Helpdesk: “Sir, check ko po.”


(Music plays)

How to Avoid Investment Scams

How to avoid scams

Not only millions of pesos lost, but lives are destroyed because of investment scams.
Children have to stop school, retirement put on hold, peace of mind lost, and some commit suicide. These are the consequences that victims of investment scams have to face. Filipinos seem to forget the mistakes of the past and fall for the same trap of a “high return in a short span of time” investment. It may be too good to be true, but a promise of a brighter future is an offer they cannot refuse.

We cannot undo what has happened. The only thing we can do is to learn from our mistakes and the mistakes of others. We always remind everyone to never invest in something that you do not understand. Discover the questions you need to ASK [Read more…]

5 Easy Steps to Start Investing in the Stock Market

5 easy steps

It’s all over the news – the Philippine Stock Exchange (PSE) Index is reaching all-time high levels almost every day. A common Filipino may think, “I’m not interested. I’m not part of it anyway.” But wait! You can be part of it, take advantage of its growth, and make money as well.

The answer is simple–INVEST in the stock market!

Understanding the Stock Market

understanding the stock market

For PLDT to install more phone lines and for Jollibee to build more branches, they need capital to support these projects. Believe it or not, they need it from you!

To generate funds, these companies sell ownership or stocks to the public. Therefore, when you buy stocks, you become a part-owner of the company. To know more about the stock market and how it works, read this: Be a Partner with Business Tycoons

5 Easy Steps to Start Investing in the Stock Market

  1. Invest in knowledge – As we always remind everyone, “Aral muna bago invest.” Take time to study [Read more…]

Ninja Expenses (The Day After part 2)

Ways to beat your expenses!

In my previous article, “The Day After” I discussed how we should be very conscious about where our money goes on a regular basis. I also introduced you to “ninja expenses”—or those small expenses we normally ignore but can pile up if left uncontrolled.

With that in mind, let’s continue with another example of a ninja expense… drumroll please!

The Ninja is back!

Practically everybody in the Philippines has a mobile phone. No wonder, the Philippines is hailed as the “Texting Capital of the World” with the amount of SMS we send every day. We can’t deny it–we are social beings who love to connect with our families and friends in every way possible – SMS, MMS, BBM, Facebook, Twitter and Instagram.

In every place and in every occasion, it is very common to see an individual madly texting away for some reason. And if they’re not texting [Read more…]