I'm wondering why we've seen a few rallies at the PSE lately. I've been looking at the news and haven't seen anything noteworthy that would boost stocks. Our basic fundamentals don't seem to have changed much except of course that the oil price has been falling in the world market.
Is oil that big a factor? What about inflation. Doesn't it look like its here to stay?
Ron Nathan seems to be of the opinion that things are still bad. He even quoted someone saying that 2009 may be worse than 2008 for the global economy. Ron soberly reminded us about the housing problem in the U.S.
While I don't want to concede quite yet that 2009 will be worse for the Philippines, I would agree with Ron's point in that we haven't seen the end of the credit and housing crisis which really was what started the jitters mid to late 2007. Since then our stocks (and sadly our portfolio's) have been steadily going down. Why the boost now?
Tsupitero hasn't updated his website so I don't really know what's going on with the number crunching. :p However, since foreign selling is still going on we have to look within our shores for the reason. My guess is still that the bottom hunters and the like have been making bets. What their reasons are elude me. So with that in mind, it all sounds like a house of cards.
I'll wait till the PSEi falls below 2500 before I go shopping again.
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