breaking below 2000

The PSEi closed today's trading session at 1,953.49 points. The psychological 2000 level was broken.

I don't see this as a surprise and I don't think anyone who has been watching the market lately would either. We had it coming. While it is nice to see markets rise, I think that it is in times like these that the real opportunities arise.

Not all who see the opportunity can afford to take advantage of it while not all who can afford to take advantage of it can see the great opportunity.

Lots of stocks are cheap and getting cheaper. Caution is necessary as many stocks cheap for a reason. Finding the diamonds in the rough is the key. Common sense makes simple and strong business attractive, specially the ones we are very familiar with as Filipino Citizens.

I like MWC, JFC, RLC, BPI, PX, TEL, SMC, BDO, ALI just to name a few...

plenty of time to pick and choose

The market is a scary place to be investing in now. As a result, those that have the guts or smarts as well as the money to invest in stocks have a good amount of time to choose what to buy.

Because of the prevailing fear and uncertainty in the market, we cannot expect large sustained rallies quite yet.

Philippine market makes a small rebound (+20.95)

With value turnover at Php2.2B, the PSEi climbed 20.95 points settling at 2118.75.

Tsupitero thinks that the market below 1900 will be largely oversold. Will it go that low?

Considering that it fell so quickly, maybe not right away. The traditionally bullish fourth quarter is coming as well, so that's another factor against it falling below 1900.

Nonetheless, I'm already pooling some more funds to make a few year end purchases. I really believe that a few smart moves at a time like this can achieve handsome rewards. It's a buyer's market. :)

Dow now below 8500

About a year ago, the Dow was pushing forward around the 14000 level. It was an exciting time.

The Dow closed last week below 8500 at 8451.19 points. Will the PSEi take a cue from that and drop below the psychological 2000 level?

The PSEi closed last week at 2097.80. down by almost 200 points amidst some recovery in Asia.

PSEi approaches the psychological 2000 level

U.S. Free Fall
The dow is on a free fall. Having already fallen below 9000, analysts believe it may even fall to the 7500 level.

PSEi & Asian Markets join the fall
The PSEi closed today at 2097.80, down a whopping 190.64 points with trade value at a little over Php3B. Why are the markets moving down so quickly? As far as the dow and other American indexes are concerned, I understand why. The credit crunch is really taking its toll on their economy. But what is really puzzling for me is that Asia has been joining in the nosedive. I haven't come across a compelling argument that Asia will fall into a recession.

China and Japan
I know that China is feeling the heat now but the consensus among economists points to a slowdown not a recession. If there will be a country in Asia to go into recession, I think it would be Japan. Simply because of their close ties to the U.S. and the major effect that the negative numbers in the automotive industry will have on their economy as a whole.

Middle Income Countries in danger
The middle income countries that export mostly to the U.S. are susceptible as well. However, many of such Asian countries have plentiful foreign reserves. If Asian countries play their cards right, we're looking at slower growth, but growth nonetheless.

Still in the green: the Philippine Economy
As regards the Philippines, the most conservative estimates I've seen are still in the green. The Arroyo government still sticks to the projection of somewhere over 4% in growth. The lowest I've heard is a projection of over 3%.

Trading Action
With the market now approaching that psychological 2000 level, I think that fundamentals will justify buying at around the current levels. However, the volatility calls for caution. Many investors say this is neither a buying or selling market. However, I think small purchases at regular intervals still seem like the best way to go to building a solid long position.

The drop slows. PSEi down by 19.30

The PSEi closed today at 2288.44. Maybe tomorrow we'll be in the green again as the index is down by a lot less than yesterday. Volume is still around the Php2B mark at Php2.236B.

I found it ironic that the financial index was the only one that went up today.

snowballing PSEi; down by 116.45 points today

Recession is really worrying Asia. The theory is that middle income emerging economies will join the economic problems of the U.S.

Is the Philippines included? The numbers seem to lean on a resounding yes. I think the fundamentals are different however.

As far as banking and real estate is concerned, I think the lessons learned back in 1997 are still clear. The industry players have adjusted so as not to let history repeat itself. Note also that we can probably still count on large remittances from our biggest export, labor. This will keep our foreign reserves strong. It is well to note that our OFWs send dollars because its convenient but if need be they can send a host of other currencies.

While certain agricultural exports will get weaker as U.S. based demand wanes, we're still seeing growing demand from other parts of the world. This logic may even be stretched to other areas of Philippine exports. While China and India have monopolized the spotlight as new and strong sources of demand, how about the Oil rich Arab nations? How will their ever increasing wealth affect the Philippines? That's a factor worth considering.

Things aren't too clear now and that's just it. I wouldn't bet against the Philippine economy just yet.