Monday, February 09, 2009

Is 2009 a good investment year?

Is it time to invest? We know there is a crisis going on, and the question in our minds is when is the best time to invest?

Actually, every time is a good time. For example when mall tycoon Henry Sy, started his mall business via the SM North EDSA mall in 1983, the Philippines was in turmoil politically and economically – many thought that the period was not good. But today he is the country’s richest, and he got numerous malls all over the country.

So when is best time to buy stocks? When is the best time for you? When the DOW recovers to 9000 or when it gets down to 6000?

I know the crisis is not over yet. It is right now unfolding in front of our daily lives. Read this: Nissan to Cut 20,000 Jobs, Japan’s best-known companies, including Toyota, Sony, Hitachi, NEC, Hitachi and Panasonic announced sharp earnings revisions and job cuts. Where is the Dow now?

If you have money to spare, and you are a risk taker, I’d say..I would start buying stocks now in increments and on whatever direction the Dow gets into, that is, if you are investing for the long haul. I am certain; the value of the stocks that you will buy today would be much higher, 3 or 5 years from now.

However, it is prudent to follow this advice (taken from

To maximize your market investments, heed these tips:

1. Get into investments you know and understand. Study all investment options carefully before plunking down your money.

2. Deal only with reputable agents/banks/financial institutions.

3. Determine your investment persona, which is based on your appetite for risk. If you are conservative, make the bulk of your investment pot in more conservative instruments. If you are willing to take on more risks, you can put more money in riskier investments.

4. Make sure you have an emergency fund first. This should be at least 6 months' worth of your expenses. This will be your safety net. Over this amount, invest.

5. Diversify your investments. Don't put all your money in one type of asset class (stocks alone, for instance) or one type of currency. With this, if one asset class is down, the others can still earn for you.

If you are serious about investing, take time to talk to an investment specialist.


PS: I am not a pro, ask guidance somewhere else. Trade at your own risk.