panic mode

Okay, so I have lost 25%. Not even my diversification into bonds a few months ago was enough to cushion the sharp falls in the last few weeks. A few more slumps in the market and I might wake up one morning 30% poorer.

My risk appetite is on its last legs. Should I dump now and keep what's left of my money?

Only I seem to care

It seems many Pinoys have no clue how the recession can affect them.

Owners of companies have never been more aware of every centavo, that's for sure. However, many clueless employees (which outnumber worried businessmen) sit and stare at their computer monitors under the illusion that their jobs are secure.

People, if your boss sneezes, you could catch a cold. We should all be panicking more, you know.


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source: InvestorTrip.com
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Signs of the times

This week, major industries started to lay off employees.

Call centers are either cutting their seats (ACS) or posting huge losses (Convergys).

CitiGroup's Philippine unit, which is the biggest foreign bank in Manila, is set to "re-organize" its 4,000-strong workforce and ax those that they feel are not needed anymore.

Jollibee was among the top stock losers.

Etc, etc, etc.

All these can contribute to unemployment, which gives people less money to spend. This then affects many other industries which right now seem "safe" despite the recession. The property sector may see low sales / huge loan defaults. Service agencies (non-voice BPOs, advertising houses, back-end processors) will feel their clients' penny-pinching. Almost all companies across industries - food, medicine, basic and luxury goods, cable companies, telecoms, technology distributors, media - will see sales declines as their customers / their clients / their advertisers buy less and less.

Are you scared yet?

I am. But it could just be the coffee.

(I hope it's just the coffee).