Why are Pinoys afraid of the stock market?

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Wednesday, July 16, 2014


IN A survey conducted by the Philippine Stock Exchange (PSE) last 2008, the Philippines ranked last out of seven other countries with Singapore having the most involvement in its stock market.

With a percentage of 0.1 percent out of the 89 million population, results of the survey showed that not even a half of one percent Filipinos invest in the stock market.

With the Pinoys being known to work hard abroad or get into different jobs to sustain the family’s needs, why are we still poor?

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In a discussion with Joey Tayaban of COL Financial and Bo Sanchez’s Truly Rich Club, stock market investment basics were taught to interested Kagay-anons last Monday, July 14, at Pearlmont Inn here.

The fact that most Filipinos do not invest in the stock market was discussed during the gathering.

“The stock market is a good ground to grow your money without having to quit your job or sacrifice spending time with your family,” Tayaban said.

Misconceptions and fears, according to her, are among the main reasons why people hesitate.

“The stock market is one of the greatest opportunities that give ordinary workers to be a part of the growing economy,” she said.

Some dream of being business partners of Henry Sy, Gokongwei, Lucio Tan and Manny Pangilinan. But they dream, not invest.

Why not buy shares in companies that you believe in, a market that you frequent the service and products. In companies that withstood the challenges of the changing economy. With less than your month’s salary, you can own a part of SM, Ayala, or Jolibee, Tayaban added.

“When a company stagnates for a while, you will have to have faith in the product. Besides, when a company stagnates, they sell their shares a little bit cheaper. That is the time where you should buy. When the company grows, your dividends will too,” she said.

Tayaban said: “You don’t need to watch your stocks everyday as well. In five years, big companies you invested in will double or triple with you getting a double or triple dividend too.”

And most of all, Filipinos think the stock market is for the rich.
Some stocks are sold at P15.00 or P50.00 to P500.00 depending on the profit the company is getting.

If, for example, Ayala sells its shares at P180.00 with the minimum of 12 shares per purchase, that would be P2,160.00. For that amount only, you become part owner of Ayala Lands.

It’s way less than what you spent for that latest smartphone, she said.
“The key really is to be wise about your investments and ask guidance from experts. And one should start early, as young as possible,” Jamie Torayno, who is in to real estate, said.

Torayno, 27, started to invest in the stock market a few years ago.
If you’re still thinking twice about investing, ask yourself this: do you want to work for money or do you want your money to work for you?

Published in the Sun.Star Cagayan de Oro newspaper on July 16, 2014.

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