Congratulations to the Philippine Stock Exchange and to the Philippines for achieving another milestone! Such was achieved not only by institutional investment houses but also to all individual investors. We hope that your decision to invest in our own backyard was a good decision you made.
source: http://www.bloomberg.com
I remember when some stock investors friends and enthusiast alike were predicting until where will the PSEi index be. We never imagined that to date it will be at 7.100 level. We were all worried that such surge brought about by the bullish economy, good financials, and the latest investment grade upgrade would soon end like waking up from a good dream. Also financial houses see 2013 as a stormy year with all the things happening around the world and the effects of the financial crisis in Europe and US still lingering. But with the PSEi beating previous highs nearly every week I guest such is now the Philippines’s “New Normal”.
What scenarios then can we expect to happen next?
For me I see two for now. One is that the PSEi will hit 8000 this year and the other one is that stock market will go to a momentary correction and will be flat at 7000 level till year-end.
One factor that I believed will affect the bullish Philippine Stock Market is the upcoming election. I recently read news of ambush to former mayor, different and questionable partylist groups, and the unending black propaganda to opposing politicians. The current government has succeeding in fixing and making better previous leaders but with the new set of leaders the Philippines will be again starting from scratch. Lots of politicians continue to be politicians after election instead of being really statesmen to lead the growing economy.
With that in mind I hope our voters will be wiser. And of course spreading knowledge about investing in our country and how to better handle money is a must. We need to educate ourselves financially to be able to achieve a robust and financially sound Philippine economy and of course the PSEi at 8000 or more at the end of 2013.
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About the blogger
Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Learn more about Louis and his financial freedom advocacy here.
PSE Academy (www.pseacademy.com.ph) provides a comprehensive, interactive, and practical web-based investor education for market participants, would-be equity investors, and the public in general.