What Does The 2019 Hold Financially? You Might Want To Invest Now.

It's almost the end of the year and we are interested on the economic velocity of the country which calls for actions the government and the private sector should take note and make sound choices that will lead to a more financially stable growth towards the new year.

With 2018 is a big year for the Philippine economy which was greatly affected by the TRAIN Law which led to a record inflation in the middle of the year which  prompted fear to investors and businessmen. It was like a domino effect that other things followed such as the fall of the Peso which almost reached PHP54 to a US Dollar, The increase in the Jeepney and Bus fare, and other commodities.


Before the year ends, Sun Life Asset Management, presented by Michael D. Rodriguez - Chief Investments Officer Sun Life Financial Philippines, looks back at the prominent factors that have shaped the economy, here are some of the things they concluded in their research:

Positive:
  • BSP has turned hawkish. peso appreciated and gained 1.82% vs USD in 1 month.
  • Monthly Inflation has started to slow and is likely to peak in 4Q.
  • Legislation is moving: tax package 2 (TRABAHO) and rice tariff Bill has been approved.
Negatives
  • Another year of weak earnings. So far tracking 9M18 earnings is at 7.5% YoY vs 11% expectation entering 2018.
  • Current account widening further but Peso could remain at these levels thanks to inflation peaking.
With the end of the year looking more positive with the influx of many remittances and increased spending, this is actually brings the economy on its year-end boost to finally close the fiscal year. Despite the hard-hitting policies which purpose is to be a long-term solution, the effects are indeed feeling the initial pains but when they have stabilized, it will move the country further.

The stock market (PSEi) is expected to move higher despite the roller coaster ride within the year which sparked concerns with many investors. However the general direction still yield a positive outlook especially for 2019. With a target of 7900 points, it is attainable and if more Filipinos are enticed to learn and invest, it can help a lot for growing more companies and provide more jobs.  

For the newest Sun Life product, this was introduced by Maria Charina Fuentes - Strategic Development Head of Sun Life Asset Management Inc. They introduced a new product for asset management that comes now in a more affordable and accessible type, the SunLife Achiever Fund.

The Sun Life Prosperity Achiever Fund aims to generate long-term capital appreciation through a portfolio of equities, fixed income securities, and alternative financial instruments, adjusted accordingly as the respective target dates of the Funds approach.


As the Funds draw closer to their target dates, allocation to equities is gradually shifted to fixed income to reduce the overall risk and volatility.

For those who have a long term goal in terms of finances, this would be a great way to invest with investments that start for as low as PHP 1000. You can also add more to your investments with increments of PHP 1000 and easily processed through partner banks like BDO, BPI, and Metrobank.

For his conclusion, he cited some of the notable events that would provide "lift" or "drag" to the soaring national economy:


Tailwinds:
  • Foreign inflows will return as inflation improves
  • Bulacan airport to lead infrastructure projects
  • Reserve requirement cuts will resume 2019 AFTER inflation has been normalized.
  • Election related spending should improve some upside to GDP
Headwinds:
  • Higher US rates on track
  • Potential correction in US markets given lofty valuations and trade war jitters
  • Trade war will be prolonged and escalated. Impact on PH is still unclear.
In conclusion, despite the challenges for consumers and investors this year, 2019 looks positive with stabilization of foreign exchange, inflation, and influx of more investments in the country proves to be an emerging economy that calls for more people to be more financially wise to be further be prepared for the uncontrollable future.

If you are interested with their new products and what to invest, you can go to www.sunlifefunds.com or ask a authorized agent in your area.

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