There’s been a long standing discussion about Peso Cost Averaging whether it works or not. This post is not to prove whether it is good or not but rather to clarify some questions that our kababayans have regarding this stock timing mechanism. Also as promised this is the uploaded and compiled version of the Facebook Live that I did. For those who missed the live version you can scroll down below to watch the discussion.
Here are some of the questions asked:
Elaine Optim Profeta
“Hi Marvin. I have VUL, UITF and MF. Both of my UITF and MF are equities, my VULs are balanced funds. Half of my investments are in VULs. Is it advisable to put more in VULs than in UITF and MF? My goal is long term, double my capital, if possible, in 5 years. Is it feasible? What bank can you suggest for UITF and company for MF? Thank you, Marvin.”
“PesoCostAveraging: this is my method since i started in COL.. i have been buying stocks each month regardless of the price..but recently all my chosen stocks are on HOLD,, should i still buy no matter what? What other advice can you give regarding PCA? Thank you sir,, your change of topic is in perfect timing.”
“Is PCA the most effective way on investing in stock market? Especially for long term investors?”
Kent Anthony Calumba
“How vulnerable are these instruments/methods to internal/external risks than the others?”
“Halimbawa po i’m investing 5k/month (PCA) to a certain company A then may biglang dumating na dividend, let’s say 1k. What is more advisable, should i reinvest it to company A (bale 6k worth of stocks na ang bibilhin ko the following month)? Or should i invest the 1k to another company (B) and just hold (kasi hindi naman monthly kung magbigay ng dividend so hindi na applicable kay company B ang PCA)? Or are there any better suggestions po? Iniisip ko po kasi na baka hindi ko na nasusunod ung general principle of PCA, which is to buy a particular stock for a fixed amount on a regular schedule, kapag bigla ko ginawang 6k ang investment ko nung binigay ung dividend. Sorry for the long question. Thank you.”
“Hello Sir, I bought TEL stocks last year and it seems the trend going down. Is it wiser to sell right away or hold? Thank you.”
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.