After the euphoria, the rah-rah and the booyah, the traders and investors alike have been silenced by the steep, unforgiving and nail-biting technical correction of the PSE Index.
The last line of defense that I can foresee is at 6310. It was like a daydream, we greeted the new year with 5860.99, reached the peak at 7,403.65 on May 15th, a 26-percent gain in just 5 months. But look at the index now, with one eye closed, down 11.4% from previous high in just a matter of 15 days!
I will not talk about the Fundamentals of the Philippine economy as everyone knows, we are doing “just fine” as compared to other countries. I’m just expressing what I feel during these times. Some are asking, Will the index continue to go down? Is now the time to buy? Is it time to cut loses? Will I lose my shirt? I will also not recommend to buy nor to sell as there are already too many gurus out there. You may have noticed the plethora of Philippine stock market blogs that have popped out for the past few months. Well, I think this saying is true… “Everyone is a genius in a bull market.”
What I’d tell you is this, you should already know the risks when you decided to enter the stock market. You should accept the consequences if the market doesn’t go in your way and you alone is to blame if you lose your shirt! The only way to gain knowledge on this game is to make mistakes and to learn from these mistakes. If you can’t accept loses then you should not be investing your time and money here.
To know the companies that are included on the PSE Index, please go to this link.
You may also want to visit my guide on How to Invest on the Philippine Stock Market: http://www.pnoytrader.com/2010/07/invest-in-the-philippine-stock-market/
Photo from: 123RF.com