24 October 2011

PSEi 4,201.08. +34.48 points. +0.83%.

IP continued its decline, dropping steeply by 36.59%, from 3.17 Pesos last Friday to just 2.01 today. The buy-on-rumor-sell-on-news play seems to be over for now. IP peaked at 3.87 last week.

The investing world has been most bullish lately. Even perennial bears should consider the possibility, however unlikely, that Europe may have gotten its act together. There is also another scenario that must be considered. The markets may simply be so irrationally strong right now, it will ignore whatever news comes out of Europe and just keep going up.

A trading stance to be considered, for the truly chicken-hearted, is to go 50/50 stocks and cash. This would mitigate the effects of any sudden spike or crash in the wake of Wednesday’s follow-up EU meeting. Something to consider carefully.

This entry was posted in Philippine Stock Market and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s