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When the markets feel shaky, scandals breaking, politics heating up, uncertainty in every headline
it’s easy to feel anxious about what comes next. But moments like these remind us of one simple truth:
we can’t control the market, but we can control our own household finances...
And that’s where real security begins.
Now is the time to strengthen your foundation, protect your savings, and make sure your family is ready for whatever the future brings.
You don’t need fear. You just need a clear plan and steady habits.
Let’s walk through the five practical steps every family should take today, especially when the times are this uncertain.
Increase liquidity and shorten time-horizons
Maintain a larger cash or near-cash buffer (e.g., a 6–12 month reserve), and favor shorter-term, liquid investments (money-market funds, short-term government/corporate bonds) rather than locking into long-term illiquid assets.
Why: When political risk rises, policy or regulatory changes can be abrupt, assets can lose value quickly or suffer liquidity squeezes.
Having assets you can access quickly gives flexibility to respond to sudden adverse developments without forced fire-sales.
Diversify both geographically and by asset class
Don’t concentrate too much of your portfolio in Philippine equities
Consider spreading part of your family’s investments abroad (developed markets, global diversified funds) and across different asset-classes (equities, bonds, gold).
Why: Domestic corruption and policy-risk can disproportionately hit local markets and sectors.
For example, infrastructure and government-contract sectors could be exposed to investigations and delays (as is currently the case with flood-control projects).
Assets tied closely to the domestic political-chain are riskier. A foreign-asset allocation helps reduce this “politics-tail” risk.
Review and tighten risk exposures and governance
Conduct a portfolio audit: identify vulnerable assets (e.g., companies heavily reliant on government contracts, local infrastructure firms, real estate whose value depends on uncertain permits).
Why: Corruption scandals and the state’s response (probes, seizures, asset-freezes) increase the risk of sudden losses or reputation/operational risk for firms closely tied to government projects.
Hedge currency and inflation risk
Given the political uncertainties, ensure part of your wealth isn’t purely in Philippine pesos or peso-denominated assets.
Consider holdings in hard currency (USD, EUR) or foreign-currency bonds and assets that hedge against domestic inflation or currency devaluation.
Why: Poorer institutional quality and higher political risk tend to correlate with higher inflation, currency weakness and capital flight. Indeed, research shows that reduced political stability ties with higher inflation in emerging markets.
By diversifying currency and inflation exposure, you protect your family’s purchasing-power in a worst-case local scenario.
Focus on low-risk, essential assets and review debt commitments
Prioritize owning assets that serve essential needs (your home, reliable transport, emergency-fund) and avoid taking on high leverage (large loans, speculative property acquisitions) in the current environment.
Ensure your debt service is sustainable even under adverse events (job disruption, regulatory shock, asset-value drop)
Why: In periods of political/economic stress, non-essential assets and high-leverage positions tend to be the first casualties. If regulatory changes, protests, or governance breakdowns hit, you want the family positioned to stay afloat rather than chase high returns.
Concluding Thoughts
The situation is not a signal to abandon investing or go into panic mode, the market still offers growth opportunities, but it is a signal to conserve and fortify before chasing high returns.
By focusing on liquidity, diversification, governance, inflation/ currency hedge, and avoiding leverage, you position your family to survive turbulence and take advantage when the environment stabilizes.
Treat the current situation as a potential “shock-event” scenario, build resilience into your plans, and ensure your family’s financial foundation is strong irrespective of the outcome.
All the best my friends!!
#acgadvice
