It’s the month when retail stock investors are jolted with an electrifying dip in the PSE during the month of august – September. The Philippine stock market usually goes down in ratio of about 6 out 10 time during this period. For Chinese and Japanese belief, it’s the time when the spirit of the dead are given permission to roam around the world of the living. During this period, it is believed to be bad luck to engage in any long term business, investments and property. It is believed that if you participate in such activity you are bound to fail. Some attribute the fall of the PSE due to the coincidental Vacation Mode of most people in most area around world. Remember that even if it’s the Philippine stock exchange, a lot of the activities are still dominated by foreign portfolio investors.
For me the Ghost month is a month of opportunity. Since we are investing in the stock market for the long term, I see SALE ! SALE! SALE! It’s the time we can buy premium stock at discounted price. This is the time I double my investment. We can actually secure our position of certain stocks that are expensive during the past few weeks.
Don’t worry about all your portfolio turning red. As long as you are invested to good companies with good fundamentals and right price, your portfolio will eventually turn green in a few months.
Be patient and disciplined with investing in the PSE.
Happy investing,
Doc mike
P.S.
“Be fearful when others are greedy, be greedy when others are fearful” – Warren Buffet