After the bombardment of negativity in the Philippine Stock exchange during the “O-Ghost month / August month”, our initial expectation was an immediate turn-around to the positive because statistic say our beloved PSE usually bounce back to an average of 3.5 %. What is keeping our market still in the sluggish disposition? In my opinion the sluggish sentiment are brought about by the FED’s remark regarding its optimistic position on a possible increase in the interest rate hike pending on the release of the U.S Jobs report or the Non-Farm Payroll.
What does this Jargon have anything to do with the Philippine stock Market? For traders or short term investors a lot. If America sneeze, it will ripple in the PSE because majority of the PSE investors are Foreign Investor. These traders are there for the Buck. The trader’s mindset to leverage their money for maximum amount profit at a shortest time possible.
If the FED increase the interest rates, that will mean an increase in the strength of the U.S. dollar and it will maneuver the money of the foreign investor towards the U.S. and away from immerging markets like Philippines regardless of Macro fundamental situation.
I believe in the fundamental situation of the Philippine Economy and I believe that this short term volatility should be capitalized because this the time when most first liner and second liner stock are at a bargain price.
The time is right to buy buy buy J
God bless and enjoy investing,
P.S.
If you are going to ask me if the interest hike is going up, I don’t really care because I’m investing for the long haul. Long term investing can beat volatility any day.