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Guidance for Stock Market Investing Exclusively for TrulyRichClub Members

Note: To understand the Stocks Update, first read Bo’s e-book, My Maid Invests in the Stock Market.
Click here www.TrulyRichClub.com to download now.

Volume 10, No. 8 April 2018

Keep Doing Your Monthly Thing

(And If You Have Big Cash, Divide by Twelve)

The Philippine stock market index has gone down from a high 9,000 to 7,900. (Note: The index refers to the
performance of a basket of thirty of the most representative companies in the market.) Yes, it looks like a big dip, but
that’s really only a decrease of twelve percent.
As usual, people have all sorts of questions now: Will the
market start to go up? Or will it go sideways? Or will it go even
lower? Here in the TrulyRichClub, those questions are not really
that important. Because our constant push for you is that you do
your regular investing month in and month out. So keep buying
your SAM stocks with the regular twenty percent of your monthly
income that you set aside for building your retirement fund.
As for your other cash reserves (perhaps the proceeds of your
previous selling), you can divide them into twelve tranches and
invest each part for the next twelve months. Obviously, if there’s a
huge downward trend and the index reaches 7,200 (which is about
twenty percent dip from 9,000), we will recommend that you add
more money and just ride the volatility. But we don’t know if there
will be this huge downward trend. Thus, it’s wise to divide your big
cash into twelve parts and start investing that amount too each
month.

Happy investing!

May your dreams come true,

Bo Sanchez

P.S. I invite you to earn additional passive income. How? Invite your friends to the TrulyRichClub. When you invite,
always use your affiliate link, so that we can track that it was you who invited them to the Club. For more information,
watch our free webinars on affiliate marketing. Go to www.TrulyRichClub.com now.

Stocks Update Page 1 of 4

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Addressing Concerns
By Mike Viñas

Due to the recent weakness of the market, many have wondered if ever we are already in a bear market. If we
are in a bear market, we should then sell all our stocks for we can expect even larger drops that might last for a longer
period of time. However, if we are just experiencing a major correction, then our response will be different. In such
a case, we should prepare to accumulate stocks as the magnitude of the current drop is turning out to be significant
enough and a recovery can be expected in a shorter period of time.
Only two things have changed domestically since the start of the year when there was much excitement in the
stock market, and this reality is one of the reasons research analysts think we are just suffering a major correction.
These are the two things:
First is higher-than-expected inflation. Average inflation for the first three months of the year reached 4.4
percent (based on 2006 as the base year). This exceeds Bangko Sentral ng Pilipinas’s (BSP) two to four percent
projected range and the forecast of economists.
Second, the substantial weakening of the peso. The peso is around
four percent weaker compared to its December level. This is because of
the country’s current account position that changed from surplus to a
deficit.
With higher expected inflation and the weaker peso, the BSP,
according to analysts, did not do anything to address these problems.
This caused concerns that inflation may continue to rise and the peso
would continue to weaken. Now, because our market was not exactly
cheap at its peak of 9,058, these concerns gave reason for investors to sell
their stock. This is what led to the ongoing correction. However, higher
inflation and a weaker peso are not enough to trigger a bear market.
To explain further, one of the primary reasons for the increase in
inflation this year is the passage of the tax reform program that led to
the implementation of new or higher excise taxes on several consumer products such as oil, sugary drinks, cigarettes,
and automobiles. This is the main reason for BSP’s decision to keep interest rates unchanged in spite of the higher-
than-expected inflation from January to February. Analysts believe that there is a good probability that inflation will
go down next year as the increase in excise taxes will be limited to only oil products, and such increase will be small
compared to the increase this year. In addition, the concerns that inflation might increase significantly should be
alleviated with the assumption that inflation falls back below four percent, possibly later in the year. Thus, analysts
don’t think higher inflation is enough to trigger a bear market.
At the same time, the weak peso is a concern for foreign investors, which currently account half of the market’s
value turnover. A weak peso could erode the value of their portfolio. However, again, this is not enough to cause a
bear market. One example was in 2017 when the U.S. dollar depreciated by ten percent against a basket of other
currencies. But in spite of this, the U.S. stock market, measured by the S&P 500 Index, increased by ten percent last
year.
Moreover, the peso is weakening for a good reason, and it’s because of the growing importation of capital
goods, in line with growing investments, and efforts to improve the infrastructure of the country. The increase in
investments should create more jobs, while improvement in infrastructure should eventually help us attract more
foreign direct investments. The said factors should then keep the peso from further depreciating.
Lastly, in terms of strategy, it’s in corrections like these that we find an opportune time to accumulate SAM
stocks at good prices, so that when the market recovers, we are able to reap gains from having bought in times of
correction. May this guide you accordingly.
Let’s ride through this correction together.

Stocks Update Volume 10, No. 8 • April 2018 Page 2 of 4

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Here are our SAM and Mutual Fund Tables as of April 20, 2018 closing:

Stock Current Price Buy Below Price Target Price Recommendation

AP  39.70 39.92  49.90  Continue buying 

CEB  88.30 100.24  125.30  Continue Buying 

CHIB  34.40 36.52  42.00  Continue Buying 

GTCAP  1045.00 1188.00  1485.00  Continue buying 

MBT  82.90 89.60  112.00  Continue Buying 

MEG  4.40 4.92  6.15  Continue Buying 

RLC  19.10 19.88  26.85  Continue buying 

AC  919.00 872.00  1090.00  Stop Buying 

ALI  41.10 38.60  52.12  Stop Buying 

BDO  134.00 119.13  137.00  Stop Buying 

MER  321.60 302.60  348.00  Stop Buying 

SM  901.00 774.78  891.00  Stop Buying 

SMPH  33.00 30.32  37.90  Stop Buying 

UBP  90.60 87.82  101.00  Stop buying 

CHP  3.30 7.44  9.30  Hold 

NAVPS WHEN BOUGHT  CURRENT NAVPS 

FUND CODE FUND ESTIMATED RETURN
( 2016-01-12 ) (as of 2018-04-20)

XPEEQ Philequity Fund 31.0639 38.0404 22.4585%

XPEIF Philequity Index Fund 4.2155 5.1766 22.7992%

Sunlife Prosperity Equity

XSLEQ 3.4805 4.1886 20.3448%
Fund

Stocks Update Volume 10, No. 8 • April 2018 Page 3 of 4

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2017 Top Winners of the TrulyRichClub’s Stocks

Note: The percentage returns cannot be compared between the two tables below. The All-Time Winners table does
not take into consideration a cost-averaging method. The percentage return is only from a buy-and-hold strategy. The
2017 table, however, integrates a cost-averaging method throughout the months it was under the Buy-Below.

ESTIMATED
STOCK TIME PRICE ESTIMATED
STOCKS TIME
SYMBOL RECOMMENDED RANGE RETURN
HELD
October 2013 to March
SM Prime Holdings SMPH 29 Months P16.90 to P21.70 27.95%
2016
September 2015 to June P1,270.00 to
GT Capital Holdings GTCAP 2016 9 Months 22.79%
P1,530.00

January 2016 to April

D&L Industries DNL 3 Months P8.10 to 9.15 12.96%
2016

Top Past Winners of TrulyRichClub’s Stocks

ESTIMATED
STOCK TIME PRICE ESTIMATED
STOCKS TIME
SYMBOL RECOMMENDED RANGE RETURN
HELD
June 2011 to February 2012
 Ayala Land ALI 9 Months P15.09 to P21.65 35%
(3rd week)
Bank of The February 2012 to November
BPI 10 Months P68.45 to P91.00 34.29%
Philippine Islands 2012 (4th week)
February 2012 to December
SM Prime Holdings SMPH 10 Months P12.48 to P17.00 27.75%
2012 (1st week)
January 2013 to April 2013
Meralco MER 3 Months P268.00 to P377.00 28.05%

First Phlippine
FPH June 2011 to June 2013 25 Months P63.18 to P95.20 32.92%%
Holdings
JG Summit
JGS February 12 to October 2013 18 Months P25.75 to P43.50 39.96%
Holdings
D&L Industries DNL February 2013 to April 2014 14 Months P6.45 to P10.00 44%
Banco De Oro BDO April 2013 to August 2014 16 Months P89.60 to P93.00 24%%
SM Prime Holdings SMPH October 2013 to March 2016 29 Months P16.90 to P21.70 27.95%

P1,270.00 to
GT Capital Holdings GTCAP September 2015 to June 2016 9 Months 22.79%
P1,530.00

(Disclaimer: Past performance doesn’t guarantee that you’ll have the exact same results in the future. After all, your
earnings depend on the market’s performance.)

Mike Viñas is an investment trainer of COL Financial Group, Inc. He is a Certified Securities Representative.

Stocks Update Volume 10, No. 8 • April 2018 Page 4 of 4