Stock Smarts Market Outlook 2014 | Marvin Germo

Stock Smarts Market Outlook 2014

By: Marvin Germo | January 22, 2014

After the long break, I’m back at writing again!  I’m excited and pumped to share about this years Stock Market specific outlook!  My desire is to see a generation of investors who have the right foundation and conviction to invest in the stock market.  I believe as more investors come in the more literacy and education should take place!

My goal for making this outlook series is to continue to spark hope for investors who may have lost hope from losses last year.  For those who have earned to earn further.  For skeptics to believe again and for more Filipinos to step into Financial Freedom.

Before we begin, if you would want a broader economic outlook you may also visit one of the people I look up to in personal finance, Randell Tiongson and his insights for our economy: http://www.randelltiongson.com/2014-outlook/

Here we go!  Strap on your seat belts!

PSE Market Outlook 2014

The PSEi over the past 5 years have dominated and outperformed majority of the markets in Asia, Europe and America.  However the last 7 months of 2013 showed how foreign selling and sentiment can bring our market down. For someone new to the market this may seem like season of uncertainty compared to the previous years where there was a lot of optimism among local investors.

I believe that our economy is poised for so much growth.  That as PPP’s all over the country and re-construction efforts in Leyte start to take place we will see more jobs created , more businesses grow, and a type of increase that every Filipino would feel!  I know we are just seeing the beginning.  Bubbles exist but not in our economy.

On top of that OFW remittances and BPO companies will still increase and dominate our GDP.  Because of that, local spending across the board would be felt and companies related to consumption will continue to flourish, fastfoods, restaurants, malls, etc.  In line with that, more excess money would mean more people currently renting would now settle and find houses and condos that they can call their own.  At the end of the day it’s every Filipinos dream to have a piece of property that they can place under their name.  With this property development companies would expand and banks too.  Why banks?  Because an economy cannot grow with out banks as they are an integral part of growth of an economy.  Just a quick example, housing loans are needed for the vast majority of the to own a house.  The more people who would take up loans the bigger the revenues that banks would earn.

PSE Outlook

These are just snippets of the various factors that will contribute to our country’s earnings.  Earnings are consistently growing and are still here to stay for our listed companies!  Why did I go through that first before even mentioning any outlook in any specific stocks in the market?  Because markets always move up and down.  It’s  just part of how it works.  People take profits, as they take profits and sell that brings prices lower.  That is where we are right now in 2014.  We are in between aftershocks if there was an earthquake or we are at the eye of the storm if it were a typhoon.  The middle of 2013 and portion of 2014 would be a needed break also to ease the market from the buying frenzy that it experienced the previous years.  But like after every heavy selling buying comes after.  The greater the fall, the greater the ability also to bounce back!

I believe 2014 is a year of positioning.  The reason why I showed our economy first is to show you that even as stock prices have gone down our economy is surging like no other.  Foreign funds may have left us but just like Douglas Mc Arthur they shall return.  Our goal now is to position right before they do.  Our goal for 2014 is to buy low so we can sell to them higher.  Because it’s not a question of whether they will come back or not but rather of “when” .

I know our economy is strong and is here to play ball with the rest of the world.  As our economy goes, so does our stock market.  We are only posed to go higher into the greater.  I believe it’s time for us to think smart, act smart and be stock smart!

For this year’s stock market outlook I have invited people I respect in different spheres relating to stocks for them to share their insights and opinions.  Watch out for their opinions in this year’s Stock Smarts: Market Outlook 2014!  What’s different this year is that our stock market experts will answer the following questions:

1.  What is your outlook for the PSE this 2014?

2.  Given that the FED disclosed that they would taper off Q.E., in your opinion what is the effect of this to our market?

3.  Sector to watch out for?

4.  Will the PSEi again hit 7,400, if so what is the trigger for this to happen?

5.  Year end projection of the PSEI?

6.  If there is one stock that you are bullish about what would it be and why?

7.  Message to newbie and veteran investors a like for this 2014?

I want each Filipino investor to gain confidence in their investments.  More than that be profitable too.  I dream of 5 Million Stock Market investors by 2020.  I’m hope for a day where foreign selling won’t affect us as much.  I want every Filipino to reach for the prize, to run strong and finish this race!  It can be done.  God is on our side, He is for us, it’s time for us to step into more than enough!

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