YOUTUBE TIMESTAMPS

00:00 PSEi falls to 5,800: buy, sell, or hold?
00:40 What spooked the market today
01:37 Why the PSEi is still far below its 2018 peak of 9,078
02:26 Buy, sell, or hold: the liquidity test
03:33 Iran, the energy crisis, and the US midterms
04:09 How a ceasefire could ease oil prices and gas costs
05:56 Uncertainty, anxiety, and diversifying beyond politics
07:24 OFW remittances, the peso, and the real estate slowdown
09:18 How Filipinos are reacting: survival mode
10:48 Do the old money rules still work? Save 10%, avoid debt, buy real estate
13:14 Viewer question: do OFW remittances keep the peso strong?
14:01 Should you worry about the stock market if you own no stocks?
15:01 Finfluencers and investing in global funds
17:40 Patience: why you should not check your portfolio every day
18:37 Why foreign investors choose Vietnam, Indonesia, and Japan
20:10 Rapid-fire round
21:18 One financial lesson for every Filipino

TL;DR

When the PSEi falls to around 5,800, buy only if you have spare cash that can sit through further drops. Spread your money across local and global funds, keep at least three months of savings as a cushion, and track your monthly finances every day instead of your portfolio value.

On a day when the PSEi slid to around the 5,800 level, Paolo Del Rosario invited me onto Bilyonaryo News Channel to answer the question on every investor's mind: is it time to buy, sell, or hold? Here is the full answer, along with the principles behind it, so you can use them the next time the market turns red.

Why the PSEi keeps falling below 6,000

The index peaked at 9,078 in 2018. It has underperformed for almost a decade since then, so a drop under 6,000 continues a long trend and is not a sudden shock. Three pressures sit behind it. Investor confidence is lower because of political uncertainty, including the impeachment conversation. The top 30 listed companies are not posting big gains. The economy of smaller businesses is soft. Foreign investors watch how the whole economy is managed, and many are taking a back seat.

Outside the country, the Iran conflict keeps the energy crisis alive. Oil surcharges are hurting travel plans, and gas prices sit around 90 pesos, with hopes of a return toward 60. If the US midterms shift power in Congress, a ceasefire becomes more likely and oil could ease. I would not build a financial plan on that hope. Politics can go in any direction, and any uncertainty creates anxiety in your finances.

Buy, sell, or hold? Start with liquidity

If you have enough liquidity to absorb the hit, buying at lower prices is a good move. Use caution, because prices can fall again while the political and energy picture stays unsettled. If your cash is already thin, buying is not right for you. Your ability to sit through a further decline matters more than the headline number.

Diversify across borders

For anyone holding meaningful assets, diversification is the answer to uncertainty. Spread your money across local markets and global ones that are less exposed to Philippine politics and oil prices. UITFs, mutual funds, and global funds can serve that purpose. One fund in a client portfolio I monitor grew from 700,000 to 1.7 million, driven by the technology sector. Past results do not guarantee future returns, yet the lesson holds: business runs in cycles, and the local economy is in a slower season. If you still believe in a local recovery, back that belief with data and trends, so you avoid the regret of saying you should have put your money elsewhere.

What OFWs and real estate are telling us

BPO and OFW inflows bring in at least 3 billion dollars every month, which keeps the peso from weakening further. Around 50 to 60 percent of OFWs work in the Middle East, so the Iran conflict reaches their income directly. Fewer OFWs are buying property, and the three biggest developers are pausing expansion to protect their liquidity. That fits my rapid-fire answer that real estate is the most overvalued sector right now, and it is why OFWs need a wider investment mix than property alone.

Filipinos are in survival mode

Walk through a mall today. Stalls are closed, big brands are pulling out, and companies are freezing hiring. Malls are our third place, so vacancies say a lot about spending. Many Filipinos are in survival mode. They either borrow to sustain their lifestyle, or they hold at least three months of savings in case they lose their job. Build the second path.

Do the old money rules still work?

Save 10 percent, avoid debt, buy real estate. These are the unwritten rules many of us inherited. They work as habits and fail as absolutes. If you earn 10,000 a month and save 1,000, the habit compounds, yet it will not beat inflation by itself. The bigger lever is income. Set ambitious goals and add income streams to fund them. Debt follows the same logic. Borrowing to sustain a lifestyle hurts you. Borrowing as leverage to build a business and create jobs can serve you and the economy. Context decides.

You are in the market even if you own no stocks

SSS, GSIS, and Pag-IBIG are institutional investors, and much of their money goes into the stock market. A falling market can affect the services and benefits you depend on, whether or not you have a brokerage account.

Finfluencers and patience

Before you follow a finfluencer, ask whether they are licensed, whether they act as a fiduciary, and who is accountable if you lose money. Then protect yourself from your own behavior. Rome was not built in a day. Checking your portfolio every day raises anxiety, and anxious investors sell at the wrong time, which turns temporary drops into permanent losses.

Why foreign money is going to Vietnam, Indonesia, and Japan

Foreign investors have been favoring our neighbors. My root cause read is that we have a PR problem abroad. Fix the perception, then the management, then the allocation, and more investors will come, especially into manufacturing that creates jobs. There is no silver bullet, and good PR without follow through fades quickly.

Rapid-fire answers

For my own money today, I chose cash. I named real estate as the most overvalued sector and said I would buy into a fresh IPO. For a 30-year-old with one million pesos, I would choose a business over property or equities because of control. The rule I would break for the right opportunity is diversification: put your eggs in one basket and watch it closely. That is a deliberate exception, and it is not a default.

The core principles

1. Let your liquidity decide whether you buy.

2. Diversify across local and global markets.

3. Hold a three-month savings cushion before you take risk.

4. Grow your income, because saving 10 percent alone will not beat inflation.

5. Use debt as leverage for a business, and avoid it for lifestyle.

6. Confirm that any advisor is licensed and accountable.

7. Monitor your finances every day, and leave your portfolio alone.

That last one was my closing lesson for every Filipino watching. Your cash flow, your expenses, and your savings are the numbers you control. The stock market will move without your permission.

This article is general education and not personalized investment advice.

FAQ

Should I buy stocks when the PSEi falls below 6,000?
Buy only if you have enough liquidity to absorb further losses. Use caution, because prices can drop again while political and energy uncertainty continues. If your cash is thin, buying is not the right move.

Why is the PSEi so low compared with 2018?
The index peaked at 9,078 in 2018 and has underperformed for almost a decade. Lower investor confidence, flat earnings among the top 30 listed companies, and a soft economy for smaller businesses all contribute.

Do OFW remittances help the peso?
Yes. BPO and OFW inflows bring in at least 3 billion dollars every month, and without them the peso would weaken further.

Does a falling stock market affect me if I own no stocks?
Yes. SSS, GSIS, and Pag-IBIG invest a large share of their funds in the stock market, so a decline can affect the services you rely on.

Is investing in global funds better than the Philippine stock market?
Global funds are a sound way to diversify because business runs in cycles and the local economy is in a slower season. Keep any local position backed by data and trends.

How often should I check my investments?
Not every day. Frequent checking raises anxiety and pushes investors into emotional selling. Monitor your overall finances daily, and leave your portfolio alone.

© 2026 David Angway

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