DESPITE the ongoing pandemic and market uncertainties caused by the war in Ukraine, bankers still believe that it is always a good time to invest even in times of uncertainty.
Robert Rol Richard Raymond B. Ramos, head of the Trust and Investments Group of Rizal Commercial Banking Corp. (RCBC), advised to put aside funds for a rainy day.
“You never know when you might need these funds. A good example for this would be the establishment of an emergency fund that is invested in money markets or short term securities,” Ramos said during the bank’s Hexagon Club online forum.
Antonio Jose K. Garcia, head of Retail Sales and Online Marketing at RCBC Securities, also said that while this is a tough time to be making investments, in the market, there are always opportunities to invest at reasonable valuations.
“A lot of it depends on one’s level of risk tolerance. If you can handle volatility, and we are seeing big swings almost on a daily basis, then you can take positions in specific stocks,” Garcia said.
“But any stock, whether defensive, dividend, blue chip, will still succumb to price drops if the market continues to drop. So my advice, if you’re buying, buy slowly and cautiously, as the market pulls back.”
Garcia advised investors not to make any immediate decision and think things through, especially when the numbers are not too good.
“The best thing to do is review your investment/trade and see where it went wrong,” Garcia said. “Did you buy too early? Did you buy too much at one time? Always review and see how you can correct any mistakes you may have made with your investments”.
Ramos, meanwhile, said it’s also about looking at the assets one is investing in, adding that if the asset class you are holding depreciates in value, there are always two options.
“First, if you see more value in the security and the asset depreciated only because of volatile market conditions, you may hold on for the meantime. But, if the security does not provide further value then you should be willing to sell it immediately and move your funds to a more profitable investment,” Ramos said.
He advised to pay off debt first before investing, since the ultimate goal is to achieve financial security.
“The only time you should invest first is when the interest earned from your investment will generate more than the interest of your debt.”