We hear it in the news…
We see it on Facebook…
Some of our friends talk about it…
So, what is the Philippine Stock Exchange Index (PSEi)?
Investopedia defines it as:
A market index is an aggregate value produced by combining several stocks or other investment vehicles together and expressing their total values against a base value from a specific date. Market indexes are intended to represent an entire stock market and thus track the market’s changes over time.
Uggghh… seems too complicated to me…
Thanks to PAMI for this simple analogy of the Stock Market Index (aka benchmark) and basketball:
Why should I care about the Philippine Stock Market index?
If (and only if!) you are investing in the Philippine Stock Market, this index gives you a quick snapshot of how our stock market is fairing at a given moment. There are a lot of factors that can affect the Philippines Stock Market index like positive news here and abroad and foreign investments selling off their stock market positions to name a few.
However, if you are just standing on the sidelines and keeping all your savings at the bank, this does not concern you.
If you are happy with your savings being eaten by inflation, then so be it.
But, if you want your money to work harder for you, then one of the things you can look into is to invest in Paper Assets like the stock market and mutual funds.
As a Financial Planner and Adviser, I’d be glad to get you started, just contact me now.
Do you have friends who would like to start investing too? Share this with them!
To our success in all areas of life,
Argel Tiburcio, CIS, RFP Graduate Member
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