You reap what you sow....

from a facebook post. author not stated

Good morning said a woman as she walked up to the man sitting on the ground.

The man slowly looked up.

This was a woman clearly accustomed to the finer things of life. Her coat was new.. She looked like she had never missed a meal in her life.

His first thought was that she wanted to make fun of him, like so many others had done before.. "Leave me alone," he growled....

To his amazement, the woman continued standing.

She was smiling -- her even white teeth displayed in dazzling rows. "Are you hungry?" she asked.

"No," he answered sarcastically. "I've just come from dining with the president. Now go away."

The woman's smile became even broader. Suddenly the man felt a gentle hand under his arm.

"What are you doing, lady?" the man asked angrily. "I said to leave me alone.

Just then a policeman came up. "Is there any problem, ma'am?" he asked..

"No problem here, officer," the woman answered. "I'm just trying to get this man to his feet. Will you help me?"

The officer scratched his head. "That's old Jack. He's been a fixture around here for a couple of years. What do you want with him?"

"See that cafeteria over there?" she asked. "I'm going to get him something to eat and get him out of the cold for awhile."

"Are you crazy, lady?" the homeless man resisted. "I don't want to go in there!" Then he felt strong hands grab his other arm and lift him up. "Let me go, officer. I didn't do anything."

"This is a good deal for you, Jack" the officer answered. "Don't blow it.."

Finally, and with some difficulty, the woman and the police officer got Jack into the cafeteria and sat him at a table in a remote corner. It was the middle of the morning, so most of the breakfast crowd had already left and the lunch bunch had not yet arrived...

The manager strode across the cafeteria and stood by his table. "What's going on here, officer?" he asked. "What is all this, is this man in trouble?"

"This lady brought this man in here to be fed," the policeman answered.

"Not in here!" the manager replied angrily. "Having a person like that here is bad for business.."

Old Jack smiled a toothless grin. "See, lady. I told you so. Now if you'll let me go. I didn't want to come here in the first place."

The woman turned to the cafeteria manager and smiled....... "Sir, are you familiar with Eddy and Associates, the banking firm down the street?"

"Of course I am," the manager answered impatiently. "They hold their weekly meetings in one of my banquet rooms."

"And do you make a godly amount of money providing food at these weekly meetings?"

"What business is that of yours?"

I, sir, am Penelope Eddy, president and CEO of the company."

"Oh."

The woman smiled again. "I thought that might make a difference." She glanced at the cop who was busy stifling a giggle. "Would you like to join us in a cup of coffee and a meal, officer?"

"No thanks, ma'am," the officer replied. "I'm on duty."

"Then, perhaps, a cup of coffee to go?"

"Yes, ma’am. That would be very nice."

The cafeteria manager turned on his heel, "I'll get your coffee for you right away, officer."

The officer watched him walk away. "You certainly put him in his place," he said.

"That was not my intent. Believe it or not, I have a reason for all this."

She sat down at the table across from her amazed dinner guest. She stared at him intently.. "Jack, do you remember me?"

Old Jack searched her face with his old, rheumy eyes. "I think so -- I mean you do look familiar."

"I'm a little older perhaps," she said. "Maybe I've even filled out more than in my younger days when you worked here, and I came through that very door, cold and hungry."

"Ma'am?" the officer said questioningly. He couldn't believe that such a magnificently turned out  woman could ever have been hungry.

"I was just out of college," the woman began. "I had come to the city looking for a job, but I couldn't find anything. Finally I was down to my last few cents and had been kicked out of my apartment. I walked the streets for days. It was February and I was cold and nearly starving. I saw this place and walked in on the off chance that I could get something to eat."

Jack lit up with a smile. "Now I remember," he said.. "I was behind the serving counter. You came up and asked me if you could work for something to eat. I said that it was against company policy."

"I know," the woman continued. "Then you made me the biggest roast beef sandwich that I had ever seen, gave me a cup of coffee, and told me to go over to a corner table and enjoy it. I was afraid that you would get into trouble... Then, when I looked over and saw you put the price of my  food in the cash register, I knew then that everything would be all right."

"So you started your own business?" Old Jack said.

"I got a job that very afternoon. I worked my way up. Eventually I started my own business that, with the help of God, prospered." She opened her purse and pulled out a business card.. "When you are finished here, I want you to pay a visit to a Mr. Lyons...He's the personnel director of my company. I'll go talk to him now and I'm certain he'll find something for you to do around the office." She smiled. "I think he might even find the funds to give you a little advance so that you can buy some clothes and get a place to live until you get on your feet... If you ever need anything, my door is always opened to you."

There were tears in the old man's eyes. "How can I ever thank you?" he said.

"Don't thank me," the woman answered. "To God goes the glory. Thank Jesus...... He led me to you."

Outside the cafeteria, the officer and the woman paused at the entrance before going their separate ways....

"Thank you for all your help, officer," she said.

"On the contrary, Ms. Eddy," he answered. "Thank you. I saw a miracle today, something that I will never forget. And.. And thank you for the coffee."

God is going to shift things around for you today and let things work in your favor.

If you believe, send it.

If you don't believe, delete it.

God closes doors no man can open & God opens doors no man can close..

If you need God to open some doors for you...send this on.

How to Find Your True Calling

By Brian Tracy

Your success in life will be largely determined by your ability to find your true calling, the right work for you to do, and then putting your whole heart into doing it very well.

The happiest people are those who have carefully thought through who they are, what they want, where they are going, and then decided exactly what they need to do to get to their goal. Asking yourself five targeted questions can help you home in on whatever path is right for you.

#1: What do I do easily and well?

When you are seeking your true calling, you must look at the activities that have always been easy for you but which have been difficult for others. Often, you will get comments and compliments on how well you do a particular task. You will be surprised when you hear those remarks, because you never even thought about it that much. It just seemed natural for you from the very beginning.

My daughter is a natural and spontaneous little actress. From the time she was three or four years old, she has memorized lines and acted in every school play and function that has ever come up. In fact, by the time she was six, she was memorizing every line in the school play, not only her own but the lines of every other child. When the other children forgot their lines, Christina would whisper them and keep the play on track.

When Christina was 11 years old, she appeared at a city council meeting and gave a speech in favor of a permit allowing her school to expand. She stood up at the meeting, on a chair, in front of 150 adults, and gave an impassioned little talk. As a result, the permit was granted – and Christina was on the front page of two newspapers the following day.

#2: What are the things that I have done in life that have been most responsible for my success?

In looking back over your work and your activities, what are the things you have done that have given you the greatest rewards and satisfaction? If you work for a company, what are the activities you have engaged in that have achieved the very best results for yourself and your company? Your previous success experiences are signposts pointing to the sort of things that you should be doing more and more of if you want to deploy yourself more fully for greater happiness and satisfaction in life.

#3: What would I do differently, knowing what I know now?

Is there anything that you are currently doing that you wouldn’t start up again if you had to do it over? Is there any relationship that you are in that you wouldn’t get into if you could make the choice today? Is there any job or part of any job that you are doing that you would not embark upon, knowing what you now know, if you had to do it over?

As many as 95 percent of people working today are under-employed, not working to their full capacity for themselves and their companies. Only 5 percent, when interviewed, will say that they are working fully extended at their current job. Only 5 percent feel that their entire potential is being consumed and that they are working on the outer edge of their abilities. These people also tend to be the happiest, the highest paid, and the most fulfilled in any organization or enterprise.

#4: What work would I choose to do if I won a million dollars, cash, in the lottery tomorrow?

This is a question I sometimes ask my seminar audiences. When you hear this question, your gut reaction is a good indicator of where you are today and possibly where you should be going in the future. Most people, when they think of winning a million dollars, think of quitting their current job and doing something else. There is nothing wrong with that. Since most people have backed into their current jobs, taking them because they just happened to be there at the time a job was needed, most people probably should be doing something else.

Napoleon Hill once said the key to success in America is to find out what you really enjoy doing, and then find a way to make a good living at it. What do you most love to do?

Successful people don’t feel like they work at all. They are doing what they love to do, and they are so busy doing it that their work becomes their play. Their work life and their personal life blends together like a hand fitting neatly into a glove. There is no separation. They are totally committed individuals who are accomplishing far more in a shorter period of time than the average person who is merely going through the motions.

#5: If I were absolutely guaranteed tremendous success in any job I chose, what field would I go into?

One of the major reasons people hold themselves back from doing what they are truly meant to do is that they are afraid they will fail in some way. And being afraid that you will fail is the surest guarantor that you will fail.

But what if you are absolutely guaranteed success in any field you choose? What would it be? What would you want to do if you had unlimited time, unlimited resources, and guaranteed success?

The answer to that question should cause you to tingle a little bit. It should make your stomach flutter. It should send a thrill of excitement and anticipation through you that tells you this is the job you should be doing.

Asking and answering the above five questions can change your life.

You have within you talents and abilities so vast that you could never use them all if you lived to be a thousand. You have natural skills and talents that can enable you to overcome any obstacle and achieve any goal you could ever set for yourself. There are no limits on what you can be, have, or do if you find your true calling.

When you become one of the few people who are doing what they love to do, who are totally absorbed in doing something they really care about, you will make more progress in a couple of years than the average wage slave makes in five or 10 years. You will come to the attention of people who can help you and open doors for you. You will be happy and fulfilled in both your work and your personal relationships. You will have more energy, enthusiasm, and creativity. You will unlock your true potential, and your future will become unlimited.

 find out about Brian Tracy and his expertise here.

DEMYSTIFYING DIGITAL | Advantages of online marketing

Tony Ahn, M.Ed., Special to InterAksyon.com

Let us try to unravel the mysteries of Internet marketing and digital public relations, one thread at a time.

The first question that should be answered is: What is the difference between the words online/internet/digital? Is online marketing different from Internet marketing or digital marketing? The answer is no. “Online” and “Internet” tend to be the terms used more by the general public (as evidenced in the number of Google searches for them), and “digital” is the term more commonly used by the marketing/PR industry itself. They are generally interchangeable. Mystery #1 solved.

A second question that should be addressed is:  What is the difference between digital marketing and digital public relations? Digital marketing generally aims to influence a buying decision through the Internet (whether or not the product is sold online), while public relations generally aims to influence perception (if you noticed that those two things can overlap, you’re right). These basic definitions do not change online, although they do have a host of disciplines and tools under them.

One nice thing about digital PR and marketing is that it is easier to measure impact (and thus return on investment) than with traditional marketing. For example, it’s hard to measure how many people see a billboard, and how many who do see it actually buy the product advertised. That’s easier to measure online. We can count how many people open an email, click a link, or visit a website. There are even ways to tell how many of those who do so actually visit a store.

It is also easier to target a particular group of people with digital rather than traditional techniques. If traditional marketing is a flashlight, digital marketing is a laser beam. With Facebook advertising, for example, I can specify not only basic demographic parameters (like 20 to 30, female, in Metro Manila), but even interests, or specific likes. For example, I can target everyone who has liked my competitor’s brand for a special offer.

There are two primary barriers for most companies to get into digital marketing or PR. The first is scepticism with technology they’ve never used. Traditional marketing always delivered before! That may be true, but Encyclopedia Britannica, Life Magazine, and Reader’s Digest were in print before, and they aren’t now. I guess tradition didn’t save them. The Internet used to only be accessed on a bulky desktop computer, but that tradition is fading so fast, that within our lifetimes the desktop computer may not exist at all. The world is continuing to change, and what is traditional will not always be the right choice. It will also not always be the wrong choice. Traditional media relations for example, will continue to be relevant as media is online.

Social media
The practical advice for this week answers the question: Does my company need a social media policy?

Social media policies are designed to let employees know what is expected of them in regards to their personal social media accounts. There are many questions to consider when developing a social media policy. For example, what if someone identifies that they work for your company on their Twitter account, and then engage in abusive or hateful speech? Even if they are not talking about their work or to another employee, it may still reflect poorly on the company. And that’s just the beginning: Is it okay to mention work-related things on Facebook? How about the company name? If okay to talk about the company, what is considered acceptable and unacceptable?

Some people might say that it’s better to be conservative and restrict employee communications on social media so as to protect the company. There’s a problem with this approach, though: today, the Internet and social media have democratized information sharing. Individuals have more power to spread a message than they ever have before. If your social media policy is restrictive, they may post something anonymous, create a parody Twitter account, or leak secrets. You can’t regulate someone posting anonymously, so providing for some freedom of expression may keep people from feeling that “going rogue” is their only recourse.

Similarly, I hear businesses all the time say “We want to have a Facebook page for our brand, but what if someone will write something bad on it?” I have two reactions: (1) If someone wants to write something critical of your organization, your lack of a Facebook page is not going to stop them. They’ll just find another place to complain, and you may not have any opportunity to respond. (2) In industries with high levels of complaints (such as telcos and Internet providers), creating a separate customer care page will give complainants an arena to voice their concerns - and it won’t be the same arena you’re announcing new products and holding promotions in.

Want something digital demystified? Send your questions to the author at tony@tonyahn.com.

(Tony Ahn is chief digital architect for Tony Ahn & Co., a full-service public relations, digital marketing, and reputation management agency based in Manila. He has written on the subject of Internet marketing and digital public relations for Social Media Examiner, Convince & Convert, and is formerly a featured blogger for Social Media Today.)

How to judge whether a company is worth investing in

by Cathy Rose A. Garcia, ABS-CBNnews.com

MANILA, Philippines - Investor Warren Buffett is the fourth richest man in the world according to Forbes magazine, with a net worth of $53.5 billion. The so-called "Oracle of Omaha" didn't become a billionaire through sheer luck, but by following the strategy of value investing".

Buffett is perhaps one of the most famous proponents of value investing, which he learned from the "father of value investing" Benjamin Graham at Columbia Business School.

With Buffett's success in value investing, one would think many more would be following his lead.

But Vandermir Say, a chartered financial analyst and a value investor, said it's not widely practiced in most markets, including the Philippines.

"Perhaps because it entails analysis of a lot of annual reports. From the Philippine perspective, when you go out and ask market participants if they read annual reports, most of them will say they don't," he said in an interview on ANC's On The Money.

Say emphasized the importance of reading annual reports of companies before investing in them.

"Reading annual reports is just like taking a blood test. If you want to look into someone's health, you have to take a look into the body and look at the records and numbers to see how he's doing. If you're not digging into a company, the business the numbers or figures, whether it has debt or not, it's hard to tell whether the business is good or not," he said.

Say said investors should look at a company's financial performance in the last five or 10 years.
"How would you know what's the cashflow of a business or will be? Essentially, the only way you can do that is looking through annual reports. Looking at the history, like PLDT, Meralco, you can see their income figures in the last 10 years. These would be very good indicators of how they're going to perform in the future," he said.

Value investors pay close attention to the income and cashflows. "We look at the past historical records to show us what they have done and from there we can understand what they can offer in the future," Say added.

Another important detail that value investors keep an eye on is the company's debt. Say noted that if you look a two companies' stock price, everything make look the same, but if you flip through the annual reports, you will see which one has debt.

Value investors are in it for the long term when making any investment. Say noted value investors like to say: "In the short term, the value of the market is a voting machine. In the long-term, it's a weighing machine."

"It's like voting - more buyers, the market goes up. More sellers, the market goes down. We don't play that game. In the long run, it's a weighing machine, it depends on the business. Does the business have good values, good cash flows, sustainable business model, competitive advantages - those are what lasts and determines the value of the stock in the long run," Say said.

http://www.abs-cbnnews.com/business/03/28/13/how-judge-whether-company-worth-investing

21 Ways Rich People Think Differently

From Steve Siebold, author of "How Rich People Think."

1.  Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

"The average person has been brainwashed to believe rich people are lucky or dishonest," Siebold writes.

That's why there's a certain shame that comes along with "getting rich" in lower-income communities.

"The world class knows that while having money doesn't guarantee happiness, it does make your life easier and more enjoyable." 

2.  Average people think selfishness is a vice. Rich people think selfishness is a virtue.

"The rich go out there and try to make themselves happy. They don't try to pretend to save the world," Siebold told Business Insider. 

The problem is that middle class people see that as a negative––and it's keeping them poor, he writes.

"If you're not taking care of you, you're not in a position to help anyone else. You can't give what you don't have."

3.  Average people have a lottery mentality. Rich people have an action mentality.

"While the masses are waiting to pick the right numbers and praying for prosperity, the great ones are solving problems," Siebold writes.

"The hero [middle class people] are waiting for may be God, government, their boss or their spouse. It's the average person's level of thinking that breeds this approach to life and living while the clock keeps ticking away." 

4. Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.

"Many world-class performers have little formal education, and have amassed their wealth through the acquisition and subsequent sale of specific knowledge," he writes. 

"Meanwhile, the masses are convinced that master's degrees and doctorates are the way to wealth, mostly because they are trapped in the linear line of thought that holds them back from higher levels of consciousness...The wealthy aren't interested in the means, only the end."

5.  Average people long for the good old days. Rich people dream of the future.

"Self-made millionaires get rich because they're willing to bet on themselves and project their dreams, goals and ideas into an unknown future," Siebold writes. 

"People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression."

6.  Average people see money through the eyes of emotion. Rich people think about money logically.

"An ordinarily smart, well-educated and otherwise successful person can be instantly transformed into a fear-based, scarcity driven thinker whose greatest financial aspiration is to retire comfortably," he writes.

"The world class sees money for what it is and what it's not, through the eyes of logic. The great ones know money is a critical tool that presents options and opportunities." 

7.  Average people earn money doing things they don't love. Rich people follow their passion.

"To the average person, it looks like the rich are working all the time," Siebold says. "But one of the smartest strategies of the world class is doing what they love and finding a way to get paid for it."

On the other hand, middle class take jobs they don't enjoy "because they need the money and they've been trained in school and conditioned by society to live in a linear thinking world that equates earning money with physical or mental effort."

8.  Average people set low expectations so they're never disappointed. Rich people are up for the challenge.

"Psychologists and other mental health experts often advise people to set low expectations for their life to ensure they are not disappointed," Siebold writes.

"No one would ever strike it rich and live their dreams without huge expectations." 

9.  Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

"That's why people like Donald Trump go from millionaire to nine billion dollars in debt and come back richer than ever," he writes. 

"While the masses are fixated on the doing and the immediate results of their actions, the great ones are learning and growing from every experience, whether it's a success or a failure, knowing their true reward is becoming a human success machine that eventually produces outstanding results."

10. Average people believe you need money to make money. Rich people use other people's money.

Linear thought might tell people to make money in order to earn more, but Siebold says the rich aren't afraid to fund their future from other people's pockets.

"Rich people know not being solvent enough to personally afford something is not relevant. The real question is, 'Is this worth buying, investing in, or pursuing?'" he writes. 

11. Average people believe the markets are driven by logic and strategy. Rich people know they're driven by emotion and greed.

Investing successfully in the stock market isn't just about a fancy math formula.

"The rich know that the primary emotions that drive financial markets are fear and greed, and they factor this into all trades and trends they observe," Siebold writes.

"This knowledge of human nature and its overlapping impact on trading give them strategic advantage in building greater wealth through leverage."

12. Average people live beyond their means. Rich people live below theirs.

"Here's how to live below your means and tap into the secret wealthy people have used for centuries: Get rich so you can afford to," he writes.  

"The rich live below their means, not because they're so savvy, but because they make so much money that they can afford to live like royalty while still having a king's ransom socked away for the future." 

13. Average people teach their children how to survive. Rich people teach their kids to get rich.

Rich parents teach their kids from an early age about the world of "haves" and "have-nots," Siebold says. Even he admits many people have argued that he's supporting the idea of elitism. 

He disagrees.

"[People] say parents are teaching their kids to look down on the masses because they're poor. This isn't true," he writes. "What they're teaching their kids is to see the world through the eyes of objective reality––the way society really is." 

If children understand wealth early on, they'll be more likely to strive for it later in life.

14. Average people let money stress them out. Rich people find peace of mind in wealth.

The reason wealthy people earn more wealth is that they're not afraid to admit that money can solve most problems, Siebold says.

"[The middle class] sees money as a never-ending necessary evil that must be endured as part of life. The world class sees money as the great liberator, and with enough of it, they are able to purchase financial peace of mind."

15. Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

While the rich don't put much stock in furthering wealth through formal education, they appreciate the power of learning long after college is over, Siebold says.

"Walk into a wealthy person's home and one of the first things you'll see is an extensive library of books they've used to educate themselves on how to become more successful," he writes.

"The middle class reads novels, tabloids and entertainment magazines." 

16. Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

The negative money mentality poisoning the middle class is what keeps the rich hanging out with the rich, he says.

"[Rich people] can't afford the messages of doom and gloom," he writes. "This is often misinterpreted by the masses as snobbery.

Labeling the world class as snobs is another way the middle class finds to feel better bout themselves and their chosen path of mediocrity."

17. Average people focus on saving. Rich people focus on earning.

Siebold theorizes that the wealthy focus on what they'll gain by taking risks, rather than how to save what they have.

"The masses are so focused on clipping coupons and living frugally they miss major opportunities," he writes.

"Even in the midst of a cash flow crisis, the rich reject the nickle and dime thinking of the masses. They are the masters of focusing their mental energy where it belongs: on the big money." 

18. Average people play it safe with money. Rich people know when to take risks.

"Leverage is the watchword of the rich," Siebold writes. 

"Every investor loses money on occasion, but the world class knows no matter what happens, they will aways be able to earn more." 

19. Average people love to be comfortable. Rich people find comfort in uncertainty.

For the most part, it takes guts to take the risks necessary to make it as a millionaire––a challenge most middle class thinkers aren't comfortable living with.

"Physical, psychological, and emotional comfort is the primary goal of the middle class mindset," Siebold writes.

World class thinkers learn early on that becoming a millionaire isn't easy and the need for comfort can be devastating. They learn to be comfortable while operating in a state of ongoing uncertainty." 

20. Average people never make the connection between money and health. Rich people know money can save your life.

While the middle class squabbles over the virtues of Obamacare and their company's health plan, the super wealthy are enrolled in a super elite "boutique medical care" association, Siebold says.

"They pay a substantial yearly membership fee that guarantees them 24-hour access to a private physician who only serves a small group of members," he writes.

"Some wealthy neighborhoods have implemented this strategy and even require the physician to live in the neighborhood."

21. Average people believe they must choose between a great family and being rich. Rich people know you can have it all.

The idea the wealth must come at the expense of family time is nothing but a "cop-out", Siebold says.

"The masses have been brainwashed to believe it's an either/or equation," he writes. "The rich know you can have anything you want if you approach the challenge with a mindset rooted in love and abundance."

http://www.businessinsider.com/how-rich-people-think-differently-from-the-poor-2012-8?op=1#ixzz2OXVpZ5Ug

Should I sell all my stocks now?

By Henry Ong
Philippine Daily Inquirer

Q: The stock market has started to move sideways last week after registering an all-time high at 6,800 points recently. I wonder if this is a good time to take profits now as many stocks are already expensive, but I also worry that I might regret it later if the market resumes its uptrend and goes up further. I want to maximize my profits from stocks. Can you advise me? – Evan De Vera by e-mail

A: The reason you hesitate to sell your stocks now is you have the feeling of greed that comes with the anticipation that the market will further go up. The feeling of greed tells you to hold on to your stocks and wait for it to go higher as everyone expects the stock market to break the 7,000 target soon.  There is a feeling of denial within you every time you see the market falling because you don’t want to hurt your ego by accepting the possibility that you may be wrong about your expectations.

Yes, there is no doubt that the market will go up again and possibly set another record high but every time the market goes up, the risk of losing also gets bigger. Considering the rocket speed and steep rise of the PSE index, which rose by 18 percent in less than three months, it is not hard to see that the stock market may soon be due for massive correction.

It may not necessarily be a sharp fall unless there is a reason for the market to panic but it may decline slowly on choppy fashion. Speculators will trade less as buying slows down.  Traders take a back seat and assess where the market stands fundamentally. Some may fear that the market has topped already. Others think that since the Philippine stock market is already trading at scary valuations, many stocks are now ripe for the harvest.

This may be the best time for you to cash in on your gains while the opportunity to sell at a good price is still there.  You may have missed out selling it at the highest price but at least you will be able to sell it at a nice profit before it is too late. You will never know where the market will go next. It may recover soon or stay sluggish for some time. When you sell it now, you can have that peace of mind that you can always buy it back later when it falls further.

If you are holding on to shares that are still trading at paper loss, you can sell it at best price possible. It doesn’t have to go above your cost. If you think that the stock has nothing good to offer and it is not going anywhere amidst the  bullish market environment, then make a decision to cut your losses and minimize the damage.

As a rule of thumb, cut your losses when your investment has already lost 7 to 8 percent from your purchase price. If you cut your losses at 15 percent, you will need the stock to recover by 18% to break even.  If you sell your stock at 50 percent loss, you will need the stock to recover by 100 percent  just to break even.

There are growing risks that indicate that the market may be on its way to correct soon.  

Because of so much money that is flowing into the market brought about by lower interest rates, investing in Philippine stocks has been more of liquidity driven rather than fundamentals driven.  

The excess liquidity in the system has been propelling the market to euphoric levels.  Market players have turned into speculators from investors. When people start to ignore high P/E valuations and buy up stocks like crazy, trouble is not far behind. Sooner or later, this market bubble is going to burst and many people will be rushing to get out of the market.

As we approach the end of the first quarter, it will be interesting to see how the quarterly earnings results will turn out next month. A quick sampling of the top index stocks with at least 20x P/E and above shows that the average expected earnings growth rate this year is 23 percent. Will the first quarter earnings results align with market expectations? That is something to watch out for. If the results turn out to be disappointing, then expect the market to fall. Share prices will be falling until market adjusts to a lower P/E target.

Another risk to look out for is inflation. Declining inflation from 4.6 percent in 2011 to 3.1 percent last year helped push stock prices up. The low inflation environment is a  key factor that makes the market willing to pay a premium for market P/E  because there is a perception of quality in earnings growth. The growth that is not artificially caused by inflation, because it is low but by real demand.

In  February, the inflation rate has started to pick up and rose to 3.4 percent, the fastest in four months. Although this is still low by any comparison,  there is a probability that this trend will carry on. With so much money circulating in the system, increased consumer spending that will support our growing economy this year will likely drive inflation higher. Also, we have the forthcoming national elections when a lot of money will change hands. When inflation increases, the premium on market P/E declines.

Sell now while it feels good. Look for the opportunity to sell your stocks at a good price. Selling on strength every time the market makes rally is a good strategy to get out.

Henry Ong is registered financial planner of RFP Philippines. To learn more about financial planning and how to become RFP, attend a free personal finance talk on April 4, 7 p.m. at PSE Center, Ortigas. To reserve, e-mail at info@rfp.ph or visit www.rfp.ph 

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