Aspiring Entrepreneur

Archive for March 2008

I read a bad news this morning – One of the biggest investment bank, Bear Stearns & Co., Inc. was having an insolvency problem. They announced that they’ll be needing an emergency funding from the Federal Reserve Bank of New York last March 14. Because of this, their depositors panicked and withdrew around $17 Billion in funds in just two days causing the market value of the company to lose as much as 80% of its original value. One of their major creditors, JP Morgan Chase had agreed a merger to acquire Bear Stearns via stock-swap for a value around $240 Million. This caused the PSE index to plunged down to around 3.88% to its lowest level this year to 2,793, losing as much as 112 points – its lowest level since December 7, 2006 (15-month low).

In view of this drop, I saw it as an opportunity to invest so even though all my UITF investments were down, I added an additional Php 12K to my BPI Equity Fund. I plan to withdraw all my investments by the end of this year hoping that at least the US economy has recovered from a possible recession.

As of this writing, I invested 15.48% of my savings. Unfortunately, it’s losing 8.57% of its original value.
Out of that 15.48%:

62.95% was invested in UITF BPI Equity Fund (929 units)
28.81% was invested in UITF Metro Equity Fund (30,493.65 units)
8.23% was invested in Mutual Fund (NAVPS) Sunlife Philippine Equity Fund (7,424 shares)
All were in equities – Stock Market!

My Metro Equity Fund investment is currently suffering its biggest loss of 26.12% from its original value. I availed this investment last July 2007 but I retained it until now hoping to gain more. Unfortunately, I was wrong.

My BPI Equity Fund is also undergoing a decline of 8.14%. I bought some units in January, February and a few more additonal units just a while ago.

My Sun Life Equity Fund is still gaining. I invested a minimum amount last January of 2006 in a bond fund and decided to transfer it to Equity Fund. Until now, it’s still on a profit with an appreciation of around 25.98%. I already received dividends to this investment twice. They were giving out 2% dividend per annum in the form of additional shares.

As of April 1, 2008, the following details were accounted for: Please click on the investment.doc file. Open it on a new window.

investments.doc

The rest were in a savings account: 61.81% of which were in a Special Savings Account that earns a maximum of 2.125% per annum.

On my way towards my first goal

For more information on UITFs and Mutual Funds, click here -> UITFs & Mutual Funds

To know how to get started, click here -> How to Start UITFs & Mutual Funds

I invested twice since January this year at BPI Equity Fund, hoping that the current market trend will not last that long. Unfortunately, I’m losing already – around 1.9%. Aside from this, I also had an investment at Metro Equity Fund which I availed last July 2007 and retained until now but then it was losing a lot – around 17% of its original value!! I took some extra precaution nowadays since the stock market is undergoing a bear market.  Good thing I only gambled about 15% of my savings. Maybe it’s not the right time to invest…

Some articles say that this is the right time to invest. We must pick the companies that perform well since some of them are undervalued. What is happening nowadays is a series of fear among investors. The Philippines and the rest of the world depend a lot to US – the country with the largest economy. Here in our country, we depend to them on exports. I just hope that the US Economy will rise again soon and overcome these problems of credit crunch.

In need of a Job? Try posting your resume in these websites!

1. Jobstreet

2. Jobsdb

3. Jobscity

4. Job Market Online

5. Monster


About me

Hi i'm Hari, heart break guy. I live at 12o 57’ 41.19” N 80o 14’ 32.20” E. I love blogging.

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