To start off our outlook series, it is such an honor to present the views of one person I admire and respect much, Mr. Henry Herrera. 

An actuary by training, Mr. Herrera has become one of the most influential figures in financial services industry. He is one person who truly practices what he preaches and allowed him to retire from the corporate life at a young age of 50, largely because of proper investments throughout the years.

2013 Outlook of Henry Joseph Herrera

2013 will be interesting for the financial markets – the Philippines included. The US and a number of EU nations face strong headwinds on fiscal challenges and rising debts. We may see more nations see the sovereign ratings downgraded as a result of these issues. As such, markets in these countries may experience increased volatility in 2013.

The contagion from developments in these advance nations in the US and EU will surely impact other economies, Philippines not excluded.

However, the Philippines may continue to be in a sweet spot of continued economic growth without the attendant rise in inflation given that the economy is largely domestic consumption driven.

As such, we can expect a continued low interest rate environment. Thus, investors may continue to flock to investments in real estate and stocks. The Philippine peso will likely remain stronger against the US dollar and may end the year below the P40 level.

Mr. Henry Joseph Herrera was the former President and CEO of Sun Life Philippines and a well sought after expert in his field.

Henry joined Sun Life in 1998 and has held a number of senior positions including EVP & Actuary, VP & Actuary, and SLAMC COO.  He was AVP, Actuarial for the Region in 1998.  Prior to his career at Sun Life, Henry was the President and Director of Philippine Asia Life Assurance Corporation.

Henry has over 28 years experience in the life insurance industry. He holds an MBA degree major in finance and a B.S. in Statistics, cum laude, from the University of the Philippines. He is also a Fellow and past president of Actuarial Society of the Philippines and a member of the International Actuarial Association.  He is a past president of the Philippine Life Insurance Association.

Mr. Herrera has recently been appointed as Chairman of the Board of Pru Life U.K.

2012 was truly an eventful year. At the beginning of 2012, most experts were optimistic of the Philippine economy and investments, though cautiously. The country delivered beyond expectations particularly in economic growth and the stock market. The Aquino administration gained much respect and trust not only locally but also internationally which made us look good in the eyes of many.

Credit upgrades, OFW remittances, strong peso and a bullish investment market were the stars of 2012 but will 2013 continue to deliver?

Will the stock market continue to rise? Aren’t prices over-heating? Are we going to experience a real estate bubble soon? Can the economy continue to sustain it’s growth? Will interests rates ever go up again? Can the government sustain its infrastructure projects? Will the OFW remittances continue to grow? Will the economic gains actually trickle down to the masses? Will poverty levels improve? What happens to the economy if the peso continues to strengthen? Will employment numbers improve? Will we also improve our under-employment situation? Will we get that much coveted ‘investment-grade’ status? How will elections affect the economy and the market? Will the price of oil stabilize? How will the European and U.S. economic woes affect us? Will BPO still be a vital industry in the coming years?

So many questions and honestly, we really don’t have all the answers. However, continue reading this blog series and get the insights and outlooks of people and institutions I admire and respect.