WHAT think ye?

There is this great hype at the Philippine Stock Exchange because of the gains and the Initial Public Offerings (IPO) of some great brands like Cebu Pacific Air. There is also much talk about the Real Estate Investments Trust (REIT) which will beef up public holdings in big real estate companies like SM and Megaworld.

While this is good and well, I think that the advocacy to educate the working class regarding these investment instruments is VERY LOW. Gosh, these things are not taught in our public schools and the mention of the word "Stocks" can become mind-boggling to an average High School student even in the best schools of the country. If the public is not made to understand these investments and they start rushing into the Philippine Stock Market, unarmed with technical knowledge, then their chances of getting wiped out increases many times over.

Take into example this IPO from Cebu Pacific. Though tempting to the untrained mind to freely partake of its ownership, there are many factors that should be considered before going into this hush rush investment seizure. Among these are:

1.The looming fuel shortage of the future
2.The low P/E ratios of the parent company vs the stock price
3.Volatility of the international tourism market
4.Ask Buffet regarding his opinion on airline companies

I am not saying that this is a bad investment, all I am driving at is that this takes a lot of technical investing, and if you are not up to it then you should consider hiring a consultant or trading with a mentor who has done it before.

Precious metals on the other hand is a no brainer investment tool. If you cick on the prices on the right side of this blog, you will see that Silver has entered a short bull market again and will ride until it hits a 'resistant' price ceiling where it will hibernate for a while.

In Kiyosaki's latest online post, here is a glimpse of what he had to say:

"If you do nothing else, start buying a little silver. I know I said to stop buying silver once it went over $20, but things have not changed and things are getting worse. Although expensive at $20, I believe it’s better to hold on to silver than fiat currency such as the dollar, euro, or yen. In 2010, gold has gone up about 50 percent and silver is up about 80 percent. In a few years, the world will wake up to silver, so buy a little now while it’s still cheap."

It is possible to buy actual silver in the Philippines, you just need to be a little creative in your efforts. The rewards will be worth it!