A lot of controversial opinion why our stock market is on a straight negative streak for the past few days. Opinion circulating that Pres. Duterte’s riff relationship with Pres. Obama brought about by non-traditional statements to be the sole cause of this negativity. I humbly disagree with this notion. In my opinion market corrections like these are triggered by a lot of factors like Ghost Month, expensive market price of 21 X P prior to correction, impending FED interest Hike, the recent release of a stable jobs report, and others.
Fundamentally Philippine economy remains optimistic and progressive. With a robust GDP, a stable manageable inflation rate, a decrease unemployment rate, faster remittance growth, a state of demographic dividend, and a presidential acceptance rate of 91%, Philippine Economy has a positive long term prospect.
Additional economic driver includes the government’s priority for PPP project (public private partnership), tax reform, increase infrastructure spending, ease in doing business and public safety.
Like any wine, president Duterte is an acquired taste. While his brute energy and non-traditional mannerism detract certain people, these are same qualities that makes him adored by others.
Economic stand point, fund managers and economists are predicting an encouraging scenario for this new administration.
I will continue to encourage everyone to start cherry picking your stocks at this current state of market correction (19 X P). Enjoy the process of investing in your own country because it’s a nationalistic way of making your money grow while you’re helping build our nation.
God bless and happy investing,
Doc mike