2009 - The year of the big SALE!!!

First of all I would like to greet everyone a Merry Christmas and a Prosperous 2009.

As one of the worst investment years in history comes to an end, I look at my investment portfolio and start to think - if only I kept all my money in my savings account this year then I would not have lost so much money!!!

Of course hindsight is 20-20! I don't think any one could have predicted the severity and the timing of this recession we are currently having. Not even the financial experts and analysts saw it coming.

So what should we do now? Sell out? Cut our losses? Wrong!!! The best thing to do now is to stick with your regular investment plan and continue to invest. And if you can spare more money without suffering too much, invest that too. Why? Here is the simple answer...

The world isn't going to end tomorrow. People still need to eat, people still need to buy things and people still need to live. And when that happens, over the long term the markets will recover and go up!!! Lets look back 8 years ago for some comfort...

2000-2002 could be considered one of the worst periods in our economy, back then we had so many political problems (EDSA II), peace and order problems (Dos Palmas Kidnapping), and local economic problems (BW Scandal). To top it off the world economy was also suffering from the 9-11 Terrorist Attacks.

The Philippines, back then, was in a far worst position than we are in today yet we survived and we flourished! In fact had you kept investing during that period, you would have returned over 230% on your money (as of September 2007). In fact had you invested regularly from 1999 to 2007, you would have returned over 14% per annum compounded. No savings account can return that to you.

So don't look at 2009 as a bad year. Be excited for 2009! Why? Because, possibly the whole of 2009 is considered a SALE year. That's right, almost all investments have been hit so hard they are on sale, 30 to 50% off. Some are even 90% off!!! It will be a great time to invest...

For more information on how I can help you email me on hoover@barongroup.com.ph.