While waiting for the US Equities and the foreign exchange market volatility being able to find potential markets in Asia; so far the PSEI have delivered well after breaking into the high from its consolidation period. But not without a couple of 'Market Misdirection' that gave other traders a negative level of market 'uncertainty' then. As the inflow of funds from overseas investors have provided the catalyst with the right momentum to further #PSEI climb to its current levels where a triple digit follow through from the end of week 5.05.17.
As of May 08, 2017
Another run is obviously in the making for the EPHE after it closed at 37.11 last week, while the PSEI have marked a high at 7962 level as of 5.08.17 shown above chart figure. The extended market will provide a follow-though rally as it already have indicated as a secondary run up based on the today's movement in the local bourse. Investors who has access to this market will surely be in the money. Meanwhile, access to both sides of the continent through 'ARBITRAGE' does serve as a global strategy not only for hedging purposes but to leverage buy / sell trade positions with more liquidity markets that can be access for as long as one would find the right information and be guided accordingly.
Time and again we have emphasized that this is such a good strategy applied by sophisticated investors taking advantage of arbitrage trade positions. It is always good to be on the lookout for market potentials not necessarily in the US or European markets. At the same time still be able to use the strength of the USD vs the PHP weakness exchange rate as a leverage to buy more shares in the major companies in the Philippines.
This rally would not be sustained without a healthy market pullbacks and corrections on the sectors concerned.
ReplyDeleteDoing arbitrage strategy may not be suitable for other INVESTORS who are concerned about expense ratio to 'Open & Maintain' other accounts; as compared with the fees of the local PH market.
ReplyDeleteHowever, the benefits on the bottom line far outweigh the cost by being able to grow and have the flexibility to do otherwise with alternatives and options.
SMART MOVES, SMART DECISION.