Manila Rising, So Are Rents As Confidence In Philippines Grows

[earthdome]

The capital of the Philippines is in the throes of a property boom described as the best in two decades, reflecting the increasing confidence in an economy that only recently began shedding its image as one of the region's basket cases.

Rest of story from Reuters: http://www.reuters.com/article/2012/11/25/us-philippines-property-idUSBRE8AO0CS20121125

[Old55]

I've been reading the same things lately. The stock market over there is strong but I still have my doubts. I sure hope it is true! It's about time Filipinos get a break.

[OnMyWay]

A few days ago I ran across a mutual fund run by a US company that is 100% invested in the Philippines. It has done very well lately and I was thinking about putting some money in it. The top 10 companies in it were Ayala divisions, SM divisions, PLDT, etc.

But I'll be darned if I can find it now! :bash:

If anyone knows the name or symbol is, please let me know.

[Dave Hounddriver]

A few days ago I ran across a mutual fund run by a US company that is 100% invested in the Philippines.

Be vary careful. 5 years ago I found a Sun Life mutual fund doing exactly that and paying high returns. I was excited so I went to my Canadian broker where I have an account. He checked it out with head office. I found out that it was an extreme high risk investment that my brokerage did not recommend or advise. Sun Life (and others) have many kinds of mutual funds for many kinds of investors. Just because its a big name and registered in the west does not make it safe. And that particular fund? Went bust in about a year so its good I did not invest. (Still managed to find other ways to lose my money though.)

[OnMyWay]

A few days ago I ran across a mutual fund run by a US company that is 100% invested in the Philippines.

Be vary careful. 5 years ago I found a Sun Life mutual fund doing exactly that and paying high returns. I was excited so I went to my Canadian broker where I have an account. He checked it out with head office. I found out that it was an extreme high risk investment that my brokerage did not recommend or advise. Sun Life (and others) have many kinds of mutual funds for many kinds of investors. Just because its a big name and registered in the west does not make it safe. And that particular fund? Went bust in about a year so its good I did not invest. (Still managed to find other ways to lose my money though.)

Yes, I always do my due diligence and I am not thinking about putting a lot of money in it. I think I saw this one when I was doing research on Fidelity.com but I can't find it now. It was a major fund management company, not a fly by night. It might have been Allianz. There are some very good emerging market funds out there now. That is where the growth will be for the next few years.

Edited November 26, 2012 by OnMyWay

[Mike S]

The top 10 companies in it were Ayala divisions, SM divisions, PLDT, etc.

Watch your self with these companies they have been known to get the stocks to rise and then dump them real quick and unfortunately as inside trading is know to be prevalent here you will be a loser .... regardless of all the hype you hear about the stock market being honest here ..... just remember where you are .... but then this comes from someone who doesn't trust anyone with my money ...... :hystery: :hystery: ...... :cheersty:

[OnMyWay]

The top 10 companies in it were Ayala divisions, SM divisions, PLDT, etc.

Watch your self with these companies they have been known to get the stocks to rise and then dump them real quick and unfortunately as inside trading is know to be prevalent here you will be a loser .... regardless of all the hype you hear about the stock market being honest here ..... just remember where you are .... but then this comes from someone who doesn't trust anyone with my money ...... :hystery: :hystery: ...... :cheersty:

I certainly would not be looking at individual companies but at a diversified mutual fund that has the risk spread over many companies. The performance would probably track whatever the overall market is doing. The PSE index set another record high last week.

However, I will probably go with an emerging markets fund that includes other countries like Brazil, Mexico, Columbia, , etc. Those economies are in very good condition compared to the developed world, where most of the countries like the US are up to their eyeballs in debt!

[i am bob]

The Philippine economy right now is going to be a roller coaster ride for some people. Sure, the market is going up and the Philippines is emerging as THE star of the east. And with this, the daily cost of living is going to go up. But what about all the people who are barely scraping by right now? This number of people is too great to allow for such a big rise this quickly - something is gonna have to give or the government will need to step in to help millions of people survive. Sure, you say, that is the way it is now and people are surviving... But those who are holding down the basic paying jobs (retail, office clerk, nursing, teachers, etc) are going to find that they can't afford this new Cost of Living either. And then the whole country will either go down the tube or something drastic will have to happen. Why? Because I can't see all these people living on or under the edge getting what they need to continue on - those who hold the purse strings would rather give the money to themselves and not the workers.

So where will things go from here? Keeping this really basic - Either the government will have to artificially keep the economy slower than the market dictates (and thus run the risk of a more serious recession / depression in the future), keep the market artificially low (and destroy any growth the country may experience) or a combination of these - and neither of these is good for the country. There is one other way and that is to get the unemployed working and for a liveable wage. But I don't see this happening either or it would have already happened. No matter what does happens though, the Cost of Living will still end up rising.

[Okieboy]

I see commericial development in Davao but housing not, there are so many subdivisions being built and sitting empty, they are trying to rent them out or sell for rent to own, property value is up in some areas but down in others, the poor still hurting,

[retired]

The Philippine economy right now is going to be a roller coaster ride for some people. Sure, the market is going up and the Philippines is emerging as THE star of the east. And with this, the daily cost of living is going to go up. But what about all the people who are barely scraping by right now? This number of people is too great to allow for such a big rise this quickly - something is gonna have to give or the government will need to step in to help millions of people survive. Sure, you say, that is the way it is now and people are surviving... But those who are holding down the basic paying jobs (retail, office clerk, nursing, teachers, etc) are going to find that they can't afford this new Cost of Living either. And then the whole country will either go down the tube or something drastic will have to happen. Why? Because I can't see all these people living on or under the edge getting what they need to continue on - those who hold the purse strings would rather give the money to themselves and not the workers.

So where will things go from here? Keeping this really basic - Either the government will have to artificially keep the economy slower than the market dictates (and thus run the risk of a more serious recession / depression in the future), keep the market artificially low (and destroy any growth the country may experience) or a combination of these - and neither of these is good for the country. There is one other way and that is to get the unemployed working and for a liveable wage. But I don't see this happening either or it would have already happened. No matter what does happens though, the Cost of Living will still end up rising.

It is true that all the news regarding the Philippine economy is very upbeat but i would consider the hidden caveats ... that which goes unreported in the main stream news . Factually as an investor it might make sense but as a resident maybe not so much . Philippines still has the highest income disparity in all of SE Asia to go aong with the highest birth rates . That would include the giants like Hong Kong and Singapore but also the likes of Cambodia and Laos . Does anyone that has lived here a few years seriously buy the gov. unemploment stats of 7 % or less or an inflation rate of less than 5 % ?

The benefits i would submit are primarily the same one - tenth of one % of families .. ie , the dynasty families . A new Ayala mall just opened here in Cagayan de Oro . Very upscale but a comment from a store executive partculary caught my attention . When asked by news media why the Gap chain ( American ) had decided to put a store here his reply was something to the effect that he felt Gap merchandise would appeal to the millionaires of Northern Mindanao . :-) Now , aside from the fact that i have no idea how many millionaires there are here abouts that was a pretty dumn statement . Obviously this person was unaware of marketing 101 .

And despite the fact that there is hiring for every 50 positions there are probably 500 young people standing in line to apply , most with 4 year degrees . Yet , a plumber , qualified electrician or similiar are rare . Reason being that they have all gone abroad so the cycle just repeats . And despite all the problems in the US , Euro Union Japan , etc it is those consumer countries that drive the local economy . At some point what is the need for call centers when the service or product the call center is affliated with has fewer buyers ?

Maybe i am just to old school but my history and economic memories taught that societies grew based on what they produced . And what does the Philippines produce ? Very little in the way of manufactured goods . No autombilles , planes , trains , kitchen appliances , etc . Fruits and minerals , yes but those are produced by nature and simply processed and even that the gov. does not handle well . Recent news is that Philippine gov. wants 7 % tax on all gold exported . Problem is over 90 % of all gold goes out the back door so no taxes are paid .

Didn't mean to rant but after living here 10 years or so i just don't see the progress as being nearly as rosy as the news media projects . Unless long term issues such as population control , power & water supply , agrain reform , etc. are dealt with what's coming will be inevitable .