Are we about to take off again?
Ive began to read up substantially on PSE only last week. So, we can say I started late this year. And it might be an auspicious time to rejoin since the general sentiment by today is 'somewhat' rosy.
Yellen's pronouncements appear to express some stability on their bond buying. Looks like the FED will either 1) remain for some time at whatever level they're printing money at, or even if they continue to taper, 2) the market players have accepted already the impact and assessed the rate it is going to be done.
And the Philippines, with all our fantastic GDP increase, should be among the beneficiary of this stability. Will we perform the way we did same time last year given that there is now stability vis-a-vis external factors? Will fundamentals play more role given the atmosphere of less uncertainty? Furthermore, foreigners appear to be buying the past few days (albeit in small amounts).
And so Ive been seeing 'strong,' 'confident,' 'high-conviction' [add other superlative adjectives here] recos for stocks like CPG, LC PX and the mining bunch, even a recovery of SMC. There are still screaming something like "there's accumulation happening! ride on!."
But. amidst all the 'long' predictions you should still exercise caution. Many of these pundits were the same ones who were very positive last December, but there was no Santa Clause rally that came. (I was also optimistic beginning December, so had to swallow some cut-losses, and retained mostly the solid ones like MEG, MBT, TEL). Add here the fact that truly, the PSEi is not yet in a clear uptrend.
There is no substitute to doing research by yourself. We're all together in wishing for all the uncertainties to end, but read up all you can read up about the company that you have to bet on.
Think about and read up for 2 full days on the company youre eyeing before placing a bet.
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