Monday, December 19, 2016

PSE Index Confirms its Negative Territory & PHP Depreciating Value Sustain

All the trimmings of positive percentage for PH GDP  has been attributed to the previous administration's efforts for its foreign economic and monetary policies that brought about the strength of the Philippine economy. Although, others may disagree but the fact remains that this figures were likewise seen as a positive sign from major ratings agencies and banks outlook for the next fiscal year of 2017.

#USDPHP As of 12.19.16
However, mid-into-the year, the PSEI after reaching a milestone high above 8136 levels have gradually declined to where it is being traded below the 6750 levels well within the negative territory for the major components of the Philippine stock market. The recent price recovery were merely an effort of covering losses by market capitulation with investors drawing away from the depreciating value of stocks; and not to mention the added double-whammy weakness of the Philippine Peso against the US Dollar (#USDPHP). For now, we see no real fundamental drivers to lift up prices and no technical chart formation of interest that would at least provide an encouraging sign for fund managers in the PH market.

At the least, even the BITCOIN market prices is outperforming the PHP & PSEI on its 'Single Face Value' considering that it is a 'Digital Asset Class' of its own which still can be used as an alternative strategy contrary to its volatile market place. But it has indeed found new grounds to stabilize its price on the way higher. Please check out the comments below.

Ironically we've mentioned the "Divergent Trend" between the US and Asian funds were the opposite trend direction was reinforced from the declining price levels. Even as the USD gained further from the rate hike, US 10 Year Yields have been in contracting trend direction from the USD so much so that the ill effect of higher bond yields mean lower bond prices. This trend shall continue to hold with the USD value and stock market is still expected to continue into the next year. While Asia including the Philippines with a depreciating PHP vs. the USD is likewise to do the same.

US / Asian - PH - investors have timelessly been warned since the middle of 2016, that such an occurrence would happen, yet none so far that we have heard were ever done. Portfolio management from a depreciating PSEI - stock value alongside a declining PHP should be protected from further losses. There are strategies available but it is knowing and how best implementing these strategies that are important to protect and at least to level of the playing field. Especially for high net worth individual investors with international exposure to do the same.

Be Smart & Safe, Learn the Right Methods of Hedging Stocks & Currency Value. Just Don't Sit, Watch and Allow your Investment Funds Depreciate, While You Can Do Something About it Now!  

6 comments:

  1. The irony of the matter is that the BITCOIN market's value of a single digital asset value has grown much further in trading as compared to the local market. Even the chart indicates a stronger selling diverging directional trend lower for PH stocks and PHP compared to the prices of the global Bitcoin prices. We'll provide details in a separate article. For now check out Bitcoin prices from the

    link: https://www.tradingview.com/x/dVLDiGVl/

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  2. On the side note:

    Although. one of the better news that we have came across with is the fact that the DOF is working hand in hand with plans of re-establishing a new commodities trading exchange for farmers dealing with rice and sugar including some other agricultural products that PH has to offer both for export /import.

    On top of this new Commodity exchange would be the intended 5 year plans of expanding the PSE operations in the south is indeed a welcome treat for investors alike. If these plans hold true, it would likewise be nice to see some real serious improvements on 'Transparency' and a world-class upgrade for trading stocks options' to be provided to main street investors too. It has been over 4 decades and don't you think its about time to make this happen?   

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  3. This comment has been removed by the author.

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  4. The question is for Asian - PH Investors / traders: Knowing what you now with lower stock market prices and a continued PHP declining price value; what would you have done to protect probable losses when you had a warning signal as early has the middle of 2016 before they occurred?

    The simple answer is probably nothing or by knowing how to level-off the playing field would have preserve your wealth and even gained from a Net Hedge position of your total investment portfolio.

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  5. What differentiates us @megatrade101 among other industry practitioners and professionals is the fact that having been a veteran investor / trader & strategist that have outlived market volatility is what we bring to the table of discussions. And the extensive market experience of over 3 decades are positively incorporated into the training / trading workshops /seminar presented as we adapt to market conditions that best fit the client's financial goals & objectives in real life.

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  6. In reality, PH financial media have started talking about best stocks for 2017 in anticipation of what the present administration would be focused on. 'Guess the truth really hurts for current declining market and paint a brighter picture for tomorrow, while simply leaving what's behind.

    Although, positive thinking moving forward helps, but reality should first be checked and should be addressed. As what we learn from hereunto would help traders tomorrow with better solutions for their trades.

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