Up next in the outlook series is the view of a young financial planner and stock market investor. Despite his age, he is truly full of financial wisdom and his views are one of those that I follow and his advise I often seek. A former I.T. pracitioner turned finance guru. Marvin Germo has been very active in investor education and has become a sought after expert in his field.

The 2013 Outlook of Marvin Germo

I call 2013 a step into the greater! 2012 was great, but 2013 will be the staging point for even grander things to come. 2012 showed the world how great our market is, but 2013 will show how we can sustain it and how we can take it even further.

Based on a recent survey, 93% of every Filipino believes that 2013 will be a very good year for them.  Let me breakdown the reasons why.

 Government

– Never in recent history has there such been such confidence in our present administration.  Local and international businessmen are upbeat to further invest and place billions upon billions of their money in our country.

– The peace treaty in Mindanao will open up opportunities for more business to flourish in a region plague by years and years of war.  Our countrymen down south can now finally live their lives normally and think about progress instead of war.

– The sin tax law will further increase government revenues to create multiples streams of opportunities to further grow our economy.

– The government under spent the past 2 years, and will further compensate to pump in more money this year to make up for the 2 years where it spent less.  This will fuel more growth for our economy and build more infrastructures to help our country move forward.

– 2013 is election year!  This will drive even more consumption, increase sales of companies in media, printing, consumption, logistics, and so much more!   History is on our side telling us that our economy is very vibrant during election years.

Money Matters

– The Philippine Peso is the strongest currency in Asia and as of this writing has just breached its 5^th year high against the US Dollar.  As months go by, expect the Peso to gain even more ground as America’s economy still continuous to be shaky.

– At this point we have one of the biggest reserves in our entire history!  Our government has so much cash at its disposal right now!  We even lent money to the IMF last year as a show of force on how strong we already are.

– Interest rates are low, meaning more businessmen can loan more money to fund their business and make it even bigger.

-Inflation is relatively low, allowing people to spend more at its current levels and further fuel the economy.

 Economy

– The 2^nd best economy in Asia, trailing only China from the last GDP results

– We have one of the hottest stock markets worldwide

– The Philippine BPO sector continues to dominate and remains to be a massive source of income for our country.

– OFW remittances continue to increase thus fueling the consumption and investment opportunities for our country.

– Property boom, there is still a large number of Filipinos who do not have homes and the increasing inflow brought about by the BPO and OFW markets have allowed families to purchase properties of their own.

– Consumption, this will be one of the biggest stories this year as more money moving around allows more Filipinos to spend and consume more.

– Growth prospects of local companies expanding not just locally but also abroad.  SM and Jollibee continues to expand in China.  Universal Robina Corporation is expanding its exports to other parts of Asia among others.

Technicals

I am very much a technical analysis guy as much as I am inclined to fundamental analysis.  Just by looking at charts, it is pretty evident that our market is in a long term uptrend and until I see any evidence that it will reverse, I’ll still be invested in equities or equity funds.  If things play out right, consensus reports see our market going up to 6,500 – 6,800 this 2013.  Who knows, as upbeat as we are right now we might even go to 7,000 at some point in 2013?

Now is the time for us to take a look at our country, move forward and take advantage of the vast opportunities that are coming our way.  I really believe this with all my heart that by God’s favor and Grace we are stepping into the start of one of the greatest days that are nation has yet to see.

Marvin Germo, RFP, ECE, is the General Manager of Ephesians Management Corporation and is a Financial Planner and Advisor who is one of the up and coming personal finance speakers in this generation. His Passion and zeal to educate the Filipino people has translated into transformed lives, financially free families and has moved ordinary consumers into investors.

He is an Entrepreneur and an International Financial Resource Speaker who out of his eager desire to make an impact in this nation has spoken in different spheres of society – corporations, government agencies, churches, schools, clubs, organizations, and numerous public events. His ability to breakdown complicated investment concepts and translate it into something that is simple, basic and understandable has made him one of the most sought after money speakers in the land. He has been a stock market resource person for Studio 23, ANC, TV5, Teleradyo, DZMM, GMA News TV, and 92.3 FM. HE is also a stock market write/contributor for Money Sense Magazine and BussinessMirror

He completed the Registered Financial Planners Institute (RFPI), he is a Stock Market Trader & Investor and has around six years experience in the Philippine financial industry. He specializes in technical analysis and position trading as one of his core modules in his stock market lectures. He also owns (www.marvingermo.com), a financial planning help site. He graduated from Mapua Institute of Technology with a Bachelor of Science in Electronics & Communications. He has completed the Philippine Stock Exchange Certified Specialist Course in the Ateneo Center for Continuing Education.

WEALTH STRATEGIES FOR EVERYONE!
A Comprehensive Investment Seminar

Happening this November 23, 2012 (Friday) at the Case Room,
5th Floor Tower II, RCBC Plaza, 6819 Ayala Avenue, Makati City
1:00 – 5:00 pm.
Our TOPICS will include…

•    Understanding Risk & Return
•    Economic Cycles
•    Understanding Debt & Equity
•    Creating an Investment Portfolio
•    Discussion on Investment Instruments
•    Growth Investments for 2013
•    Hedging and Defensive Stocks
•    Preferred Shares vs Common Shares
•    Capital Appreciation vs Dividends
•    Stock Market Diversification
•    Stock Investing Plan

Meet our EXPERTS …

MR. RANDELL TIONGSON

As a Financial Advisor & Educator, he is…
•    Director of the Registered Financial Planner Institute Philippines
As a Columnist of …
•    Philippine Daily Inquirer (Nominated for the 2012 Catholic Mass Media Awards)
•    Moneysense Magazine
•    Former Columnist for Business Mirror
 As a Public Speaker
•    In 2011, Randell reached thousands of people in educating and leveraging FinQ through programs like Wealth Summit, All About Money, Usapang Pera, Steps to Financial Peace Conference 2011, Blue Chip, and many more.
•    Speaker for Go Negosyo
•    Featured speaker for educational institutions like the Asian Institute of Management, Ateneo, De La Salle, Mapua University, University of Santo Tomas, De La Salle, University of the Philippines and various conferences, companies and organizations.

As an Influential Public Figure on Finance, he is…
•    One of 12 Most Influential people in Personal Finance by Moneysense Magazine
•    2011 Outstanding Alumni of the University of Santo Tomas
•    20+ years of experience in the Financial Service Industries –  Banking, Mutual Funds & Insurance.
•    International Speaking Engagements (Hong Kong, Macau, Singapore & Israel)
•    Appears as a resource person for various TV shows like TV Patrol, Bandila, 700 Club Asia, Mornings at ANC, Shoptalk, Business Nightly, Light Talk, Sis, Umagang Kay Ganda, Unang Hirit, Aksyon TV, News to Go, GNN, Talk Back, On The Money, etc.

As an an Advocate, he is an
•    Adviser of the Blas F. Ople Policy Center; in-charge of financial literacy advocacy for OFW’s

MR. MARVIN GERMO

•    General Manager of Ephesians Management Corporation
•    Financial Planner and Advisor
•    Stock Market Trader & Investor
•    Stock Market Investment Writer for China Business Magazine

His Passion and zeal to educate the Filipino people has translated into transformed lives, financially free families and has transformed ordinary consumers into investors.

He is an Entrepreneur and an International Financial Resource Speaker who out of his eager desire to make an impact in this nation has spoken in different spheres of society – corporations, government agencies, churches, schools, clubs, organizations, and numerous public events.

His ability to breakdown complicated investment concepts and translate it into something that is simple, basic and understandable to everyone. The ABS-CBN News Channel and Entrepreneur Magazine also interviewed him with regards to his skills in stock market investing.

He completed the Registered Financial Planners Institute (RFPI), He also owns (www.marvingermo.com), a financial planning help site. He graduated from Mapua Institute of Technology with a Bachelor of Science in Electronics & Communications. He has completed the Philippine Stock Exchange Certified Specialist Course in the Ateneo Center for Continuing Education.

To register please call (0915)898-6495 / (02) 852-7377 and look for Mr. Greg Pimentel or email us at training@ephesians.ph

There has been a lot of people wondering about investing in the stock market and for a good reason — our local stock market has been outperforming many other markets and has seen tremendous growth in the last 3 years.

Assuming that you have identified your investment objectives and you are willing to accept the risks of investing in equities, you may want to do the next thing and start investing.

Here’s a guest post by my good friend and ‘inaanak’ who is popularly known as Mr. Stock Smarts. I’ve asked Marvin to list the 5 things he considers before buying a stock.

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5 Basic things I consider before buying a Stock by Marvin Germo, RFP

What’s amazing about the stock market is that it is not about how deep your knowledge is in the economy or how awesome you are in using graphs that will make you earn. It’s also not about how much you know but how you implement that knowledge and balance it with your emotions. I always tell my clients that there is no right or wrong in terms of strategy in investing or trading in the stock market. What I always tell them is that when you find a strategy that earns for you, stick to it like the glue and don’t change your technique in the middle of the game.

In a nutshell here’s a basic process that I follow whenever I buy stocks. It’s my desire to see more and more Filipinos walk in their God given destinies of abundance.

1. Fundamentals — Increasing earnings and increasing market.
The very first thing that I consider before buying a stock is looking at the company’s finances. For me it doesn’t make sense to put my money into a company that is not earning. I look at the track record of the company if it’s sales, net earnings, along with its earnings per share are increasing every year, for the past 5 years. This gives me a sense of comfort as I would know what the company has done in the past to earn further. At the end of the day, it’s all about earnings, earnings, and more earnings that would take the stock price higher.

2. Valuations – Intrinsic Value is higher than the market price.

This entails computing what the company is really worth based on what it currently has and what its supposed to receive in the future. Upon computing and I see that the intrinsic value is HIGHER than the market price it furthers my stance in buying the stock. If the company is overvalued and IT’S MARKET PRICE IS HIGHER THAN IT’S INTRINSIC VALUE I avoid the stock at all cost.

3. Momentum – I buy when there is increased volume.
The stock market is all about liquidity, the more interest there is in a certain stock the easier it would be to buy and sell it. For me, no matter how good a stock is fundamentally if no one pays attention to it, the stock would go nowhere for weeks, months, and even years. The bigger the volume for a certain stock gives me a stronger conviction to buy it.

4. Technical analysis – I buy when the stock is about to reverse into an uptrend
Technical analysis is the study of market sentiment represented in graphs and charts. With the premise that an investor would be able to get indicators whether it would be a good time to come in or out of a certain stock. I only buy stocks in an uptrend, meaning the general direction of the market is in a buying frenzy for the stock. I never go against the flow or the trend as this is a very very good way to lose a lot of money. If I find a stock that is undervalued, good earnings, and has volume, I check if it’s in an uptrend then I’d buy it.

5. Emotions — I don’t listen to forums and I ignore the crowd.

Once I have confirmed everything using fundamental analysis and technical analysis and have made my decision to buy the stock. I ignore everything else. I see to it that buying is based on my analysis and not what I hear in forums, the net, or even my closest friends. At the end of the day buying of a certain stock is a personal decision that each investor should make.

To learn about Marvin, visit his site www.marvingermo.com