All About Kwarta

The second trading week ended on on an upbeat Philippine Stock market at 4.17% . I had my first stock share sell of the year when DNL hit my personal target at a little more than 20% since I accumulated less than 5 months ago. My buys shown in green lines and sells in grays It has been a good run after that ridiculous tumble back then. But the steep ascent puts the stock in so much pressure to correct at some point. I still have a few shares left in case it would continue its awesome rebound. My cash position now stands at 17% -  the second biggest piece of my portfolio. I'm eyeing on a stock that has been on a slump for so long hoping it would start it's upward reversal soon especially now that the market's in a bull once again.

The PSE Index ended 2017 at a record high of 8558.42 or up 25.11% from the previous year's close. This is pretty much a reversal of 2016's slump. My stock and fund portfolio ended slightly higher at 26.19%. My Portfolio (Orange) against the index (Green) Additionally, I was able to double my portfolio by infusing some "katas ng New Zealand" . Looking forward to doubling it again at the end of this year. Portfolio components My biggest position is still with FPH which has been a laggard for quite some time. Nobody knows when will it bounce back. But I believe it will have its own time soon. It's downward trend was somehow balanced out by the rebound of my other stocks including  FLI (which I already sold), AGI and DNL . Portfolio Accounts Looking at the PSEI's chart, there's suppose to be a major correction happening pretty soon. Let's see where the market will take us this year.

I'm not sure if I'm surprised that among the Mutual Funds invested in Philippine securities, nothing literally beats the market index at 25.11%. The question remains. Why the hell is that? I mean, I don't know too. I'm not a pundit myself. Considering that some of these funds were supposedly actively managed by "experts" who were paid premium, it seems like all of them just dump a portion to track the index and leave it there for the rest of the year. I remembered a particular fund manager actively promoting DNL  on several platforms including the social media even after its huge drop in August. Because why not? DNL was among the fund's top ten stocks. By November 13, DNL registered a significant reversal at 5.3% (circled in red below). In effect, it should have had an impact (even slightly) on that fund's performance, right?  The market index is down by 0.5694% that day. And guess what's the fund's return for that same  day? Yep, also down

The market recovered in 2017 registering a 25.11% upside. If you have invested in index funds in the past year, you'd be alright, theoretically. In fact, equity funds registering high returns were those tracking the index. That was inversely true last year when the whole market was down. If we have to draw a conclusion from that observation, we can say that index funds tend to overperform on an up market while dividend-focused funds best perform on a down market. But then again, past performance does not guarantee future results. Equity Funds Rank Bank Fund Name ROI Previous Rank 1 Security Bank Corporation SB PESO EQUITY FUND 27.52% 27 2 Metropolitan Bank & Trust Co. Metro PSEi Tracker Fund 25.68% 15 3 ATRAM Trust Corporation ATRAM Philippine Equity Smart Index Fund 25.10% N/A 4 Security Bank Corporation SB PHILIPPINE EQUITY