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Showing posts from April, 2013

a quick guide to the various asset class

Where to invest? Here's a quick guide:

CASH
-immediately available and value is universally recognized
-very low returns
-very low risk and insured up to a certain amount in banks

STOCKS
-earns dividends, a real passive income
-reduction of 50% is possible
-returns of 1000% is possible
-requires time for research
-you can hand over management to professionals in mutual funds or UITFs but in hindsight, my personally managed stock portfolio beats my equity mutual funds' returns two out of three times

BONDS
-earns interest
-low risk; governments and corporations have a better track record of paying debts than most people
-requires a high initial investment (unless you invest indirectly through mutual funds or UITFs)

PRECIOUS METALS
-gold is the "last man standing" during crises like the recent GFC
-if central banks hold gold and silver as reserves, it is prudent that you should hold them as well
-volatile, price goes up and down frequently and in a wide range
-does no…

Philippine Stock Exchange Tower

Above is the future PSE Tower in Taguig (photo from handelarchitects.com). Not a bad marketplace for those who participate in the stock and bond exchanges in 2016. Although all trades are conducted electronically, it is still nice to have some physical reminder of the simple fact that WE ARE THE MARKET, that the rise and fall of our investments is the result of the decisions of millions of people around the world who buy and sell. Happy investing!

investing in precious metal coins

Above is my gold-gilded koala silver coin collection from the Perth mint. Coin collecting has been around for a long time. In fact, it used to be the hobby of kings! Fortunately for us, you don't have to be one to start your own collection. For those who also view their collection as an investment, start with coins made of precious metals like gold, platinum and silver as they will hold their value per ounce over the long term. Note however, that the price of precious metals is volatile and may go down in the short term - perfect opportunity to buy more. Coins also have a numismatic value. Very rare and in-demand coins can fetch thousands, even millions of dollars. Lastly, build a coin collection that you will enjoy. Happy investing!