"The country's gross international reserves hits a record high of $ 21.56 B due to string dollar inflows from OFW.
Total foreign direct investment reached $ 996 million and may reached $2B
Oil prices down to $61".
Des ferriols,Philippine Star page B-3,B-4, Oct.7,2006
How these will benefit us? Here are my thoughts:
1. There will be more money that will circulate resulting to high sales for those who got business.
2. Investment in equity mutual fund and stocks will give a positive yield. In short NAV for the mutual funds and stock prices will be higher resulting to higher earnings for shareholders.
3. High interest rate for your bank savings account and time deposit.
4. Inflation will be down to 6% or less hence more purchasing power for the peso.
It's definitely a bull run.
The question though is ........how long?
ALC
I am not a rah-rah boy of GMA but I must say that we have good economic fundamentals.Also, the petite head of state managed to stay afloat and survived political persecution.
ReplyDeleteMy discipline is in the field of economics but it is in the practice of marketing that I understood economics more. It is in the active arena of buyers and sellers where theories come to life, and when growth and development is felt.
I like your blog on "investing" for it teaches young people to save and value the importance of planning. Take the call center industry for instance, young people working in this industry gets more than the minimum wage, and since they are young, they do not see the relevance of investing. They can spend a thousand for coffee at Starbucks and maybe a few hundred for a night out yet buying an insurance policy seem to be strange to them.
Well this is a long response already. Keep in touch brod.
tim