July 9, 2013 – Drawn by Opportunities

Useful Articles To Read:

Source: Benjamin dela Pena, Interaksyon 

1.)  A symbiotic relationship exists between the urban and the rural, between the farm and the city. Urban growth improves rural incomes because the city is the market for farm products.

2.) “If history is any guide, large-scale migration to the cities is part and parcel of the transformation economies must go through if they are to grow quickly. No country has ever caught up with the advanced economies through farming alone. In countries that in the last 50 years sustained episodes of 7 percent growth or more over 25 years or longer, manufacturing and services led the way. In a few cases agriculture actually shrank.”

The report points out that this development is not new: “People migrated from the countryside to the towns during Britain’s industrial revolution, and they have done so in every industrial revolution since. It is extremely rare to achieve per capita incomes above $10,000 (in purchasing power parity terms) before half of the population lives in the cities. Urbanization is the geographical corollary of industrialization: as workers leave the farms for the factories, they leave the fields for the cities.”

3.)  we need to create cities that are walkable and have good public transit, cities that provide affordable housing and good schools and parks.

*****

Source: http://www.interaksyon.com/business/65878/loan-default-triggers-transfer-of-control-over-prime-media

Introduced in 2002, the nationwide search has been adopted as a global program and introduced in 34 other countries. In over a decade, CMA recognized 86 Filipinos who have grown their businesses.

Among these microentrepreneurs is 2012 CMA national winner Floraiwin Cinglet who, together with her husband, grew their hog-raising business from two pigs into a P2.5-billion enterprise.  The Cainglets, who have moved into bell pepper and palay farming, quail eggs and bio-gas production, now support a daycare center and feeding programs in their community in Iloilo. 

“The success stories of more than 80 exceptional microentrepreneurs that the CMA has recognized in the past decade tell us that we are successful in providing a nurturing environment for microenterprises. These stories lend a face to the data and serve as validation… that our efforts and initiatives in microfinance are effective and  sustainable,” Tetangco said.

*****

I am a natural “perma-bull” in that whenever the market’s dropping and despite what other journalists even call “lethargic” volume turnover, I am very much enamored with all the newsflow that I read.  In trading, you probably call the price action as nothing meaningful, but in fundamentals, you are actually happy that despite so many good facts happening, the prices seem to not be reacting.  That’s a good thing since you can see that there’s probably a mispricing (and you wish it can go on for months so that you can accumulate as long as you can.)

 

(Inflation rate benign, consumer spending strong, toyota sales going up, tourism hitting 2mil by end of may, loan default unlikely, leverage ratios of banks less than 100%, BOP in a state of surplus et al.) – The last thing I want is someone upgrading the Philippines (though UBS and Nomura did this week, and CLSA maintained their targets.)  In any case, Philippines – still a bright spot.  The lower the prices go, the better the returns and the yields will be, Whee 🙂

Above just shows that, you cannot have a rising economy without property sector going with it.

– FT

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