Hot money is currency that moves regularly, and quickly, between financial markets, so

investors ensure they are getting the highest short-term interest rates available. As pointed out
in the article hot money does not neccessarily help the Philipine economy since it does not
really create jobs as it is morely focus on the stock market even so hot money still contributes
to the improvement of our economy as it helps us gain investors which will creates jobs and
opportunities. Blaming the uncertainties of the trade war between China and US is not really
the problem of this outflow because as far as the hot money is concern it is on the assets that
the investor is after so technically if there is no clear assets then it is only expected that no one
will be interested to invest. It is purely business in stock market as to whoever had the highest
asset acquired they are considered stable in terms of their market value. Hot money exists not
only in regard to currencies of different countries but also in reference to capital invested in
competing businesses. Banks seek to bring in hot money by providing investors short-term
certificates of deposit (CDs) with interest rates that are higher than average. Once the bank
lowers its interest rates, or another financial institution offers higher rates, investors withdraw
hot money funds and move them to take advantage of the higher interest rates. As much as the
trade war between China and US is concern they are not likely to be blame because it is only an
initiative that they are after the assets though trade war may likely effect the market flow it
wont totally affect the whole market if only the traders will be as calculative as they are to
provide solutions to such issue. Ofcourse it is in consideration that the US and China are both
part of the worlds biggest economy so it is wisely considered to have signed an investment but
with the current situation, it is only right thath the Philippine bank creates a way in which they
could gain more investors without the reliance on the two countries since it is part of their job
to secure investments that will help them increase their market value. Blaming th trade war
between China and US will only add more problem beacuse both are a country with an stable
state of economic value, whereas we are country who relies on the investors help for us to
maintain our economic rate atleast we should try to be more wise and collective in creating
solutions for our economy.