The Philippines’ investment-grade rating remains intact—holding a notch above the minimum investment grade by Fitch (BBB with a negative outlook) and two notches above the minimum by S&P Global (BBB+ with a stable outlook) and Moody’s (Baa2 with a stable outlook).

However, former Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo expects the BSP to begin pivoting its easing stance. Guinigundo points to signs of persistent inflation, noting that core inflation rose to three percent in the first quarter from 2.4 percent previously—a clear erosion of real purchasing power.

In his recent commentary, Guinigundo stressed that oil supply shocks stemming from geopolitical tensions in the Middle East are further driving up consumer prices and inflation.

As we learn in portfolio management, the fundamental cause of inflation is demand for goods and services outstripping the economy’s ability to supply them. This excessive demand manifests across fiscal, political, and social levels. More often than not, the fiscal and financial triggers of inflation are budget deficits.

Rising interest rates during inflationary periods reduce the present value of all future income from stocks, bonds, and real estate. Even if a company manages to grow its profits during inflation, rising interest rates will inevitably compress its price-earnings ratio. Consider this: a five percent inflation rate reduces the purchasing power of a ₱1,000 note to just ₱952.38. Keep that in mind.

Very recently, the Philippine Stock Exchange Inc. (PSE) announced plans to reduce the minimum offer size requirement for initial listings via preferred shares. This move will allow Small and Medium Enterprises (SMEs) with smaller funding needs to qualify for listing. The PSE has issued proposed amendments to these rules, inviting stakeholders to submit comments until May 5, 2026.

Under the proposal, the PSE intends to lower the minimum offer size requirement to ₱100 million from ₱1 billion. The proposed modified penalties would cover violations of the blackout rule; non-disclosure, delayed, or inaccurate disclosure regarding the redemption of preferred shares; dividend declarations; changes in the rights of preferred shareholders; and violations related to changes in shareholdings by directors and principal officers.

Most investments carry varying degrees of risk, including the potential for significant loss. Whether you are an executive, investor, or decision-maker, evaluating these risks is mandatory. Success in an era where the use of capital is receiving more attention than ever depends on sophisticated financial analysis, paired with the old-fashioned virtues of judgment, attention to detail, and strict financial discipline.

If investors lack clearly thought-out, measurable objectives and practical plans—particularly for the long term—they likely won't succeed. Long-term investing requires patience, discipline, and clarity. After all, significant investments are bought and held for the long haul to maximize growth potential.