(from Bo Sanchez article.)

America’s long-term direction isn’t as bright as before.

People ask me what they should do with their US dollars. Personally, early this year, I’ve sold most of my US dollars. I’ve also withdrawn all my dollars from the US Stock Market (after four years of being there). I then bought good ‘ol Philippine Pesos. I added it to my investments in the Philippine Stock Market. And in the stock market, I earned a huge profit for the first five months of the year, just following the same advice I gave you back then. Here’s the problem with America: The US Government has been printing money like crazy—to pay for their insane debts, to rescue their defaulting banks, to pump up their troubled economy.

Result? The US Dollar has steadily been losing its value. (This is one reason why Gold has risen in value at an unbelievable rate. People have been looking for a more secure place to park their money.)

For the longest time, when China or Japan or Saudi bought and sold goods, they used the US Dollar. Today, they’re veering away from it. They want to use their own currencies. Soon, the US Dollar will not be as central as it was before. And Europe’s economy is in crisis too! Countries there are defaulting their debts too.


But Asia is different. This will be where the action is. Asia will be the center of the world’s growth. In the next decade, I predict that the value of the US Dollar will go down and the value of the Peso will go up. Obviously, bad events may happen in our country. Political uprising. Natural calamities. Etcetera. If these things happen, the stock market will take a beating. But that’s okay. Because we’re long-term investors. We’re betting on the Philippine’s general upward direction, even if there will be dips and snags along the way. (You can be sure I’ll be recommending buying stocks during those dips and snags!) Because after the tragedy, we’ll rise again. Gosh, that’s a long side note.

Our five favorite stocks are the “Buy Below Prices” and “Target Prices” of our five favorite stocks: Ayala Land (ALI), Aboitiz Power (AP), Energy Development Company (EDC), First Philippines Holdings (FPH), and Metrobank (MBT).

“Buy Below Price” means just that: You buy only the stock when the share price is below that price. If it goes above that price, don’t buy it. Wait for it to go down our “Buy Below Price”.

Reason for this: So we don’t chase a stock price all the way to the top, where the risk is higher that it will come down. “Target Price” means that’s when we sell. When the share price reaches near our Target Price, you can sell half of your shares or all of them.

Ayala Land Video Presentation