I had a great lunch with my sister's family in the newly renovated Guam Reef Hotel at the new Main Restaurant & Lounge(formerly Alize Restaurant). And as my usual Sunday afternoon, had my coffee at Infusion Coffee & Tea here in Upper Tumon and browse my online stock portfolio accounts.
[caption id="attachment_929" align="aligncenter" width="2821"] Try Main Restaurant & Lounge(formerly Alize Restaurant)[/caption]Lots of newbie investors and veteran traders are mentioning the upcoming correction. And you know what that means. But COL Financial's COLing the Shots is saying a different thing. Most would agree that the Philippines is upbeat. We are expecting the PSEi to reach 6500 level this 2013. But amidst this so good stuff we can't take out the fact that what goes up should go down. Remember that corrections are good time for the stock market to really "correct" itself for the overpricing it is experiencing due to continuous appetite of investors. The report from COL Financial which you can read in full here is not saying the Philippines won't achieve another stellar year but rather says that it would be a volatile year.
One reason for this volatility is the healing European and US economy. Greece did not go to bankruptcy with the help of its Euro members and US escaped the fiscal cliff. Soon we will expect this markets to look good and as it turns to look good foreign investors will start pulling out investments and shift to those markets, of course we can't blame them. They should be putting their money where the profit is. But such event should not be look at as a negative for the Philippines.
When that happens of course stock prices will go down which is good because we can buy stocks cheaper. Also since stocks are at a bargain we should take advantage of buying blue chips stocks. Such companies should be truly owned by Filipinos and it is at this event that we can take advantage of it.
In order to keep the Philippine economy up we, the Filipino people, should support and keep it funded. It is still sad to know that only a mere 1% of the Philippine population invest in the stock market. Yes there are so many investment scams and other fraud happening in the country and it is up to us to equip ourselves to learn and be a wise investors. The government is also doing its best to safeguard the public against these scams but such should not rest on the government but should be on you the investor. Always scrutinize your target investments and keep on asking and inquiring so that you won't have any doubt, always remember that you are the one investing and thus if these investment companies want your investment they should be able to prove to you that they are legal and that they are not a scam.
Besides that I guess we should continue to learn more about our stock market. Most brokers provide updates for their investors for guidance only like COL Financial's COLing the Shots. Also you can read MoneyLifeBlood's latest post Top 10 Hottest Personal Finance Trends to Watch Out for in 2013 to learn what to expect in the Philippine this coming 2013.
I’m waiting for a healthy technical correction as almost all of the shares are very volatile and most of the prices are absurdly out of hand. rationality and moderation must enter the market and these must temper the insane exhuberance we are going through since the last quarter of 2012. like Buffett, my gun is loaded and my trigger finger is itching. even if all go down by 10% now, we are still up from the 2 Jan 2012 opening values. a bear run will clear the way for new highs and more people will be wealthier by year end.
Very true David. The thing I fear and some other trader/investor friends is that since PSEi the bull run those people who were skeptical in the Philippine Stock Market before now want to ride the uptrend. What if such bull run starts to slow down and correction kicks in? I’m sure they will be disappointed and will surely forever be skeptical about the Philippine Stock Market. I hope they do learn first about how a stock market works and it would be nice if they could just start by opening an stock brokerage account and wait for that correction so that Pinoys can now afford it.