Stock Market blood bath… what happened? My colleague and friend Marvin Germo wrote 15 reasons why. He posted the first 5 reasons in his blog, click HERE.

Here are the next 5 reasons.

6. Technicals, our market broke 3 support levels including a very strong 100 day moving average. The breakdown portrays a strong level of selling strong enough to overwhelm all the buyers in the market at a certain time. The breakdown points that the next possible support level could be the 200 day moving average around the 6,000 – 6,100 area.

7. Massive Foreign Selling, as great there have been a sudden surge of Filipino investors as of late, a large amount of our market is still dominated by “hot money.” Foreign money that could easily be pulled out anytime, like what we are experiencing now as foreigners continue to sell down and take profit.

8. GDP Announcement, this is a classic “sell on news” move that investors pulled off! I personally believe that regardless of what the GDP announcement was, either good or bad people who have sold and would have used the GDP as a trigger for selling. Also our economy follows and trails the market by 9-12 months, meaning 7.8% gained by the market has already been factored in and is expected.

9. Panic Selling, most investors that bought at 7,300 ++ sold and cut losses after the market dropped below 7,000. As panic is a greater motivator than excited optimism, it’s easier for stocks to accelerate downward than for it to push upward.

10. Expensive Market, a lot of foreign fund managers regard our market as to be already expensive as compared to other markets. I may not agree with them as they don’t actually see the value of what our market has but you can’t blame them if they are there to buy cheap and sell when it gets expensive and to comeback again once things get cheap again.

Catch the next 5 reasons at www.marvingermo.com

Learn how to properly invest at iCon 2013: The No Nonsense Investments Conference

Question: I attended your seminar “Steps to Financial Peace” and you mentioned about pooled funds as a good way to invest. I wanted to ask more about pooled funds but was unable to, so I’m writing you and asking you about it. I would also like to know if I can invest small amounts but on a regular basis in those funds.—Val Baguios, International Organization for Migration (IOM) staff

Answer: Val, thank you for attending my seminar and I pray that you learned much from me and the other speakers. It seems the seminar achieved its objective since you are now asking about pooled funds for your investments.

Let me start by defining what a pooled fund is, borrowing the definition from Investopedia.com: “Funds from many individual investors that are aggregated for the purposes of investment, as in the case of a mutual or pension fund. Investors in pooled fund investments benefit from economies of scale, which allow for lower trading costs per dollar (peso) of investment, diversification and professional money management.”

It looks like the definition made it more complex than it really is. Pooled funds are investments where people put their money, with an investment manager handling the investments. To explain further, let me use this analogy: Assuming you want to invest but do not know the first thing in investing in stocks or bonds. You can join a “pool” of investors who allow an investment manager …

Read full article at http://business.inquirer.net/13315/all-about-pooled-funds