4 Days Global Market BUST-Bernanke Scared the WORLD!

[Abraham Lincoln]

Hi Friends,

 

Its been a month since the last time i've sent you my Newsletter. All Recipients of this email is BCC'ed for privacy reason =) Thanks for the people who's supporting and providing good feedback in my 10 minutes newsletter.

 

Let's get started...

 

If you we're monitoring the global and local business news you already knew about this...
Due to Inflation and global Interest Rates + Global political concern the Fed Chairman Ben Bernanke made a confusing
statement that lead to global market Panic and investors around the globe become scared that lead to sell off..

The market sell off accelerated in Philippines, Tokyo,Mexico,London,Boombay etc... If you are watching CNBC Asia
Or Bloomberg the majority of stock market around the globe went down... and even PESO went down against
dollar to 53.25 Pesos! That problem is not LOCAL or Domestic Or what other people is blaming the "GOverment" again
those chicken Littles are Clueless. The problem has more something to do with Global Trend but we should give credits
to BSP because they we're able to keep the interest rates steady for several months and last month (MAY) the Inflation rate
in Philippines slow down to 6.9% with strong Peso compare to Feb. and March 2006 7.6% and from 8.5% last May 2005 and
7.1% last April But i believe if Fed push through in raising Inflation Rate and its Interest Rate BSP will soon be forced
to increase its interest rate and inflation rate.. and Once again SAVERS will become LOosers and the buying power of our
money will become lesser and lesser.. Prices of commodities will become higher.... Remember my example with my previous
newsletters.. Burger Mcdo Meal from 30 Pesos went up to 50 Pesos?..

CNN Money Senior writer made an statement "Ben Bernanke isn't just scaring U.S. investors anymore.
He's scaring investors around the world." That statement for me is TRUE BUT Not for ALL Investors especially
professional investors =)

Personally, I am not scared with the Global Market BUST this past 4 days why? because i like market crash maybe most of
people who will read my statement will tell me that i am "stupid" or a "jerk"  =) Investors like Warren Buffet are not
SCARED of Market Crash... they love it@!  They use Negative situation to their advantage.

 

What happened during 4 days was a HUGE PANIC Investors started to HATE their money making Asset. They started to DUMP it
as price fall. The previous months BULL Market became a BUST market for 4 days... The Greater Fools hated the stock market..
and wanted out... but of course NOT necessarily they wanted to be out completely maybe some wants to be out completely due to ailing economic condition and some its just temporary i could say because this is not yet a FULL BLOWN BUST.. but that 4 days Bust is very critical as an investor + the global economic issues are not yet resolved...

One of my top performing asset went down up to 10.77% did i sell it off? NOPE i didn't =) as i;ve said i love Market crashes
if the stock market crashes for another WEEK then i'd be glad about it =) Why? You can find my reason through Warren Buffet's
quote below..

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." - Warren Buffett

When you encountered a Market crash then decide, if you should be greedy, fearful or Hibernating =)

In conclusion the U.S. and Philippine Goverment should be aware about the Competency level of our economic leaders. The Global
Economy is ailing if you are concerned with your Financial Future, with your Love ones.. INVEST Wisely. (invest in inflation hedge investments). Hope you have learned something in this newsletter.

Any violent, good or whatever reaction are welcome.

Cheers,
Abraham
"Discredit period is the period when God reminds you that you're not as smart as you thought you were."

[Abraham Lincoln]

Hi Friends,

 

I assume you still remember this newsletter that i've sent you last June 9. After 2 Months of Federal Reserve Scare Game Guess what? INTEREST RATE was up by 5.25% to COMBAT Inflation! At last the much awaited by Investors around the Globe has been finally end.. for this Quarter. =)

 

Now remember when i told you that "I Love Market Crashes"? Today the FED meeting result was good the market is starting to recover and guess who are the Biggest Losers and Winners? during the period of downtrend till the market recovered today.

 

LOSERS are...

                    1. The Traders - People who short-sell stocks 

                    2. So called "Investors" - People who owns a Stock and thinks that they are already an Investor since they experience owning a stock of a  blue chip company.

                    3. Investors who hated their money making Assets due to down market.

 

WINNERS Are: - The people who understand Warren Buffets quote that i mentioned in my previous newsletter. (to new members of this newsletter who missed it out you may read the newsletter below). Let me repeat Warren's  quote:

                

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." 

 

Look at the NEWS and my Portfolio went up 5.71% TODAY!

 

Question is could you profit in  a down market? YES =) 

 

2nd Question is How?  - Ok here are my few advise...

 

1] Learn now to go along with the CROWD. Don't listen to "Chicken Littles" of Life, Poor and Frightend people. Choose Your Friends very carefully. Nothing wrong to be friendly BUT make sure that you choose carefully the closest friends that you go along with everyday.

 

- One of the hardest part that i've done but i tell you.... THE benefit is PRICELESS.

 

2] Keep Investing in Your Greatest Asset! - Your MIND!

 

3] Learn Financial Literacy.

 

4] Learn to Manage your CashFlow - Be prepared for the BOOM-BUST Event. (Ton's of bust will happen........ =).

- I'll give you a Tip.  One of the Key Drivers for this particular BUST is the OIL Crisis.

 

5] Invest in Inflation Hedge Investment - Blue Chip Companies will not Save you if you plan to invest in stock market.

 

To the people who don';t agree with me... I'll give you an example. If i invested my money in PLDT Or SMC (san mig corp) last year my investment will only gain 10% or a few more BUT if i invested my money in  PCKH (pancake house) your Return of Investment will be 213%!!! =) Convinced?

 

Well what more... KEEP LEARNING! Don't be an OLD DOG!  Rules of Money Making is FAR Different from the Rules of Your SCHOOL. Your ScoreCard in the REAL WORLD is your Financial Statement while in school its your Grade. W/c one will provide you "Great Wealth?" its up to you to choose =) Look at the Riches man in the World a college drop out, Look at Warren Buffet and other people who achieved "Great Wealth".

 

Hope you learn something in this newsletter. Again, When you encountered a Market crash or Slowdown... decide, if you should be greedy, fearful or Hibernating =)

Cheers,
Abraham
"Discredit period is the period when God reminds you that you're not as smart as you thought you were."