COL Financial Group Inc. is advising investors to stay invested in the stock market, citing low inflation, easing interest rates, and cheap stock prices despite economic and global headwinds.
April Lynn L. Tan, COL’s first vice president, chief investor relations and corporate strategy officer, said inflation and policy rates are expected to remain low this year, supporting consumer and business spending. Inflation stood at 1.8 percent in December, or better than the Bangko Sentral ng Pilipinas’ 2 to 4 percent target.
Tan said Philippine stocks are also trading at very low valuations, with the main index at around nine times earnings, near crisis-level lows, while US stocks are at the high end of historical valuations. She noted that most negative news is already priced into local stocks.
She acknowledged concerns such as weak global growth, a corruption scandal affecting government spending, and risks of global market contagion, but said low inflation, low rates, and cheap valuations help cushion these risks.
Tan added that many Philippine stocks offer high dividend yields, making them attractive for long-term investors. She rejected claims that local stocks are “value traps,” saying investors who can hold on to these shares may benefit as dividends provide income while waiting for prices to recover.
