December 11, 2oo8
Let’s see:
An optimist would say: YES!
A pessimist: NO!
A conservative: MAYBE...IF...
Is 2009 a good time to invest in rural banks. I say IT’S THE BEST TIME TO SPEND!
A healthy/growing economy equals investment growth (and consistent if not increasing interest, yey!!!). Because an expanding economy generates more jobs, goods and services and incomes as opposed to contraction. And what would lead to economic growth? Increasing demand for goods and services coupled with swelling income hence the increasing propensity to both spend and save (which they put in investments - banks, stock market – that are used by businesses/IPOs as loans/capital ).
As you can see, without the demand, businesses won’t have the need to expand, much less be created at all.
Clearly we are in a state of economic contraction (let’s not detail the reason anymore). Layoffs lead to decreasing income. The absence thereof or decreasing sense of security (by those with jobs but anxious), lead to decreasing ability to spend/consume goods/services, to decreasing savings and investment (and interest).
So when does contraction/recession ends?
When demand is rekindled.
Consumers will reach a point where we simply have to increase spending. Gulagulanit na ang damit mo. Pudpod na tsinelas (kasi ipinalit mo na sa sapatos kasi mas mura). Wala ng garter ang ... shorts mo. Hehe. Sumabog na ang gas stove mo. Ano pa ba? Ah, bulok na ngipin mo! In short, NAAWA KA NA SA SARILI AT PAMILYA MO.
Thanks to government intervention though. We don’t need to suffer long (and hard? hopefully). Because they are the ones which will come up with policies to help increase demand. Like infrastructure projects, decrease interest rate, borrow money from international institutions (didn’t we just did?!). Let’s just disregard for a second the new opportunity for corruption.
So is next year the best time to invest in rural banks or in other investment vehicles for that matter?
I honestly don’t know. Hehe. Yes, sa dinami dami ng sinabi ko. Whatever your decision, always factor in your risk tolerance.
All I can say, that now and the near future is the best time that we invest in:
-OURSELVES /CAREER– to keep our job, and hence our income, and our lifestyle
-KNOWLEDGE – to increase our confidence, not to mention restore the health of our portfolio
and
-PSYCHIATRIST – to maintain our sanity (joke lang po)
Let’s see:
An optimist would say: YES!
A pessimist: NO!
A conservative: MAYBE...IF...
Is 2009 a good time to invest in rural banks. I say IT’S THE BEST TIME TO SPEND!
A healthy/growing economy equals investment growth (and consistent if not increasing interest, yey!!!). Because an expanding economy generates more jobs, goods and services and incomes as opposed to contraction. And what would lead to economic growth? Increasing demand for goods and services coupled with swelling income hence the increasing propensity to both spend and save (which they put in investments - banks, stock market – that are used by businesses/IPOs as loans/capital ).
As you can see, without the demand, businesses won’t have the need to expand, much less be created at all.
Clearly we are in a state of economic contraction (let’s not detail the reason anymore). Layoffs lead to decreasing income. The absence thereof or decreasing sense of security (by those with jobs but anxious), lead to decreasing ability to spend/consume goods/services, to decreasing savings and investment (and interest).
So when does contraction/recession ends?
When demand is rekindled.
Consumers will reach a point where we simply have to increase spending. Gulagulanit na ang damit mo. Pudpod na tsinelas (kasi ipinalit mo na sa sapatos kasi mas mura). Wala ng garter ang ... shorts mo. Hehe. Sumabog na ang gas stove mo. Ano pa ba? Ah, bulok na ngipin mo! In short, NAAWA KA NA SA SARILI AT PAMILYA MO.
Thanks to government intervention though. We don’t need to suffer long (and hard? hopefully). Because they are the ones which will come up with policies to help increase demand. Like infrastructure projects, decrease interest rate, borrow money from international institutions (didn’t we just did?!). Let’s just disregard for a second the new opportunity for corruption.
So is next year the best time to invest in rural banks or in other investment vehicles for that matter?
I honestly don’t know. Hehe. Yes, sa dinami dami ng sinabi ko. Whatever your decision, always factor in your risk tolerance.
All I can say, that now and the near future is the best time that we invest in:
-OURSELVES /CAREER– to keep our job, and hence our income, and our lifestyle
-KNOWLEDGE – to increase our confidence, not to mention restore the health of our portfolio
and
-PSYCHIATRIST – to maintain our sanity (joke lang po)
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