Investors Resort to the Philippines! 🇵🇭

Investors Resort to the Philippines!

Ultra-low interest rates have turned investing safe havens into poverty-stricken wastelands. Savings accounts and government bonds are paying a pittance, but not if you’ve got the guts to reach as far as the Philippines!

When panic strikes, the market goes “risk-off.” A fearful lunge for fixed income sends the demand for bonds soaring, their bids flying, and their value for money plummeting. As a general rule of thumb, it’s hard to find anyone willing to swear a blood oath to deliver fixed, competitive income during uncertain times.

Anyone, except the Filipinos! They’ve managed to stay out of the world’s raging trade fights and actually hike interest rates, and that’s starting to pay dividends now. American investors realize how much worse their 1.94% 10-year bond yields are compared to the Philippines’ 4.61%, and they’re benefitting the Filipino economy by taking advantage!

Remembering to kick the tires by deducting inflation, the deal still looks good. The Philippine peso is strengthening as foreign investors rush in, and the country is narrowing its trade deficit with gross domestic product growth double or triple that of the USA.

Who dares wins, however, and 4.61% per year still isn’t going to get you far in the Invstr Fantasy league. Hail Mary attempts to make good fixed income are symptomatic of a far bigger issue as well, with many market players already breaking their oaths and defaulting on their promises to pay. Back to stocks then? Sure!

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