Tuesday, April 24, 2012

Of Europe, Scarborough and whatever else is on the news

Sometimes, its better to switch off the news. We have 24-hour news on the television and the internet and it can easily sway investors to act accordingly. Bad news - investors flock to gold and cash. Good news - stocks become favorable. Don't get me wrong, we need to be aware of what's happening in the world we live in. Such as governments cutting spending in Europe or that China is claiming the Scarborough shoal off the Philippines. But for investors, worrying about these events affecting our investments is useless. Worrying about anything and everything is unproductive, as the good book says so. Not to mention that worrying is bad for your mental health! Look at the bright side. Jitters in Europe cause money to flow to emerging economies like the Philippines, no wonder stocks are at all time highs. This standoff with China over some rocks in the middle of the sea may finally push the Philippines to modernize its armed forces. There is always a silver lining in seemingly grim news. It reminds me of someone who bought huge tracts of ash covered land in Pampanga after Mt. Pinatubo erupted. He bough it cheaply then and is enjoying the returns now. Always be cautiously optimistic. Happy investing!

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