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Sunday, November 13, 2016

Is the Fear for real ?!

PSE index ended in a blood bath last Friday(11.11.16) due to market fear of Trump unexpected win in US presidential race (plus next month worries on FED decision to raise interest rate). Most analyst worries that Trump policy will greatly affect the billion dollar local BPO industries. By the way, almost 80% of BPO's are US base and thus cast cloud on Philippine economy. But is this fear justified ?!

Last Friday trade showed a Php2.4+B worth of shares  from foreign funds exited the market creating panicked selling that made the index loss 198.9 points or 2.77% thereby sending Philippine shares to it's 8 months low and biggest one day loss since January.

The bull run that started in 2009 has been breached that second time this year (10.27.16) thus creating doubts whether the index can recover loss ground this time around before the year ends.


Next week, the market index will definitely test the resiliency of the 6867 (38.2 % Fibonacci support). The last time on May 10 this year, the market closest approach to this support is 6941.
This will definitely guide us if the market will continue its downward projection or reverse course.

For the mean time, the good news is the 3rd quarter GDP is projected to 6.9 to 7%.(The Philippine Statistics Authority will report third-quarter GDP data on Nov. 17). More FDI coming in, and the government thrust in infrastructure projects put the economy in solid footing.



 The FEAR is not base on solid ground...
Philippine economy is fundamentally sound and booming.
The real deal is Ride the Fear !
Fear creates opportunities, and opportunities create wealth.
As Warren Buffet advised,
" Be fearful when others are greedy, and be greedy when others are fearful"

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Read more at: http://www.brainyquote.com/quotes/quotes/w/warrenbuff173493.html
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Read more at: http://www.brainyquote.com/quotes/quotes/w/warrenbuff173493.html
HAPPY BARGAIN HUNTING

Caveat !



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