Philippine Stock Exchange Website

pntrade: Daily Market Commentary Feb. 25, 2013

phgreat — Mon, 25 Feb 2013 21:07:33 -0500

Daily Market Commentary Feb. 25, 2013

Philippine stock market is treading in overvalued territory, and a market pullback may be sooner.

phgreat — Mon, 25 Feb 2013 21:07:20 -0500

This would be one of my tumblr posts that has to do with work. I’ve been meaning to share this because of a post I made in facebook last night that elicited well-meaning and commendable replies and comments.

So i posted this article- Stock market hits another all-time high from Business World, in facebook. (One of my morning rituals upon arriving at my office is reading this newspaper. Ugh, i know, i sound like a dork or a geek.)

I was very adamant (and still is) that the Philippine stock market is overvalued and overpriced and a market pullback should be on its way. The graph below shows the performance of the PSEi (Philippine Stock Exchange Index) from January 15 of the start of the year ‘til today.

(taken from pse.com.ph)

It can be noted that the stock exchange has been nothing short of stellar with the PSEi hitting its 20th all-time high yesterday.

A friend at facebook said that market is not overvalued because the pricing just reflects the growth and earnings of the company. I told him that the companies’ earnings and financial reports has long been released. I think that the further growth is based on the market’s sentiment and optimism. Price-earnings (P/E) ratio is at over 20 times which means investors are paying 20 times more for every peso of future earnings. From this figure, we can see how confident most of the investors are for the future of the Philippine market. I wouldn’t blame them. With the government on it’s continuous fight for transparency and the country’s history of financial crises resiliency, the public can not be faulted to amass their excess wealth in the market.

But still I say that the market is overvalued and a correction would be sooner. It is overvalued because the current prices does not reflect the earnings outlook of most of the listed company’s. Investor buying is due to emotional spurt. And a price decrease would be inevitable.

Just an hour ago, Business World released this: Stocks down at noon. This not to discourage the buying public. This means that aggresive and speculative investors should take a breather and should be mindful of the more factual figures (i.e. P/E ratios,etc.) and not to jump into the bandwagon easily.

I am happy that financial literacy has been increasing in a third world country like the Philippines. This reflects the improved or growing maturity of the Filipinos in financial stewardship.

I hope and am crossing my fingers that a “healthy pullback” would be coming in the next days.

Read More

Three ways to conquer a fear of stocks

phgreat — Mon, 25 Feb 2013 21:05:16 -0500

Three ways to conquer a fear of stocks:

investingbasics:

Many investors, of course, turned their backs on stocks after markets crashed in late 2008 and early 2009 and, as a result, have missed subsequent rallies. (The S&P 500 jumped 13.4% last year and has more than doubled from its 2009 lows.) Now, money is flowing back into equities – but it’s understandable if you’re anxious about following the herd. Stocks are near all-time highs and Washington is lurching toward yet another budget crisis. Why put your nest egg at risk again?

The Arnold Daily: Commodities End The Day Mostly Fri Feb 8 15:30:00 EST 2013

phgreat — Mon, 25 Feb 2013 21:03:11 -0500

The Arnold Daily: Commodities End The Day Mostly Fri Feb 8 15:30:00 EST 2013:

thearnolddaily:

Commodities mostly ended the day lower as the dollar index continued to inch higher. Mar crude oil ran to its HoD of $96.57/barrel in early morning action. Crude really sold off around 12:20pm ET, falling into negative territory and below the $96 level. At the end of the session, crude had…

Should all hope for Apple Stock be lost?

phgreat — Mon, 25 Feb 2013 21:02:24 -0500

As Apple (AAPL) has declined from it's all time high of $705.07 per share in July to $470 per share as of February 7, 2013, will it ever go back up? Most predicted Apple would have gone up to an all high of $1,000 per share, however Apple stock has made a turn for the worst. Will it ever recover from this decline in price?

pntrade: Daily Market Commentary Nov-02, 2012

phgreat — Fri, 02 Nov 2012 23:41:38 -0400

pntrade:

Daily Market Commentary Nov-02, 2012

bryanfotino: This is what happens to the Town Pool during...

phgreat — Tue, 30 Oct 2012 06:04:32 -0400

bryanfotino:

This is what happens to the Town Pool during Hurricanes.

The Stock Exchange will be closed today and tomorrow because of Hurricane Sandy. The last time that this occurred was during the Great Blizzard of 1888.

thecounterrevolutionary: Today in History On 29 October...

phgreat — Tue, 30 Oct 2012 01:54:49 -0400

thecounterrevolutionary:

Today in History

On 29 October 1929, ”Black Tuesday,” Stock Market crashes triggering “The Great Depression”.

nostalgicallyjaded: I’ll tell you one random thing that gets...

phgreat — Sun, 28 Oct 2012 23:10:56 -0400

nostalgicallyjaded:

I’ll tell you one random thing that gets me so curious these days.

It all begun when my previous classmate from engineering told us that he recently passed a Broker Licensure Exam. I just failed to bombard him with questions that time for I didn’t have any idea what to ask, and how to absorb his answers which might be filled with business/financial jargons. In short, I didn’t want to look dumb. Who does anyway?

I don’t know if he finished Engineering, but I bet he didn’t. Never heard of him doing so, or maybe, he dropped out. He is the type of guy who belongs to the geek-looking category but is not a geek-slash-nerd at all, is physically incapable of breaking someone’s body part, and socially incapacitated of offending another person. In short, he’s head-over-heels nice, quiet, shy, and harmless. With that in mind, I wonder how he’d pull it off.

But his stockbroking skill is not what I’m contemplating about.

… It’s me, my communication skills, my career, and my future financial standing.

Though I’m working for the contact centre industry, I couldn’t set aside the fact that it is for a financial service provider and that we are required to learn procedures, laws, and money-making business strategies at work. And to think that I am enjoying an office environment, sitting on a comfy reclining chair, and facing the computer all day while talking, doing Maths, and devising tactics, it makes me want to excel and keep it as a career ‘til the time I have to retire.

However, I’m taking up Engineering, and considering such path would make me shift to a business or a finance degree. (Sigh.) I’m so fickle-minded.

breakingnews: New York Stock Exchange to close trading floor,...

phgreat — Sun, 28 Oct 2012 23:10:03 -0400

breakingnews:

New York Stock Exchange to close trading floor, trade electronically for storm

Bloomberg News:

The New York Stock Exchange said it will shut its trading floor starting tomorrow and invoke contingency plans to move all trading to NYSE Arca, its electronic exchange, as Hurricane Sandy heads toward the city.

Photo credit: Scott Eells / Bloomberg

ke brandonation: OF REFLECTIONS AND SKYSCRAPERS Check out my...

phgreat — Sun, 28 Oct 2012 23:07:31 -0400

brandonation:

OF REFLECTIONS AND SKYSCRAPERS

Check out my latest blog entry about my trip to the Philippine Stock Exchange on my wordpress. Yes i’ve moved! Well, sorta. Haha.

The Next Stock Market Crash Will Be Bigger Than 'Black Monday'

phgreat — Sat, 27 Oct 2012 07:45:07 -0400

The Next Stock Market Crash Will Be Bigger Than 'Black Monday':

moralanarchism:

The big bubble still hasn’t popped. When it does that is going to be the real economic collapse.

Friday was the 25th anniversary of Black Monday. On October 19, 1987 the Dow Jones Industrial Average fell 508 points, or a mind-numbing 22.6%.

How bad was it?…

Let’s put it this way, if it happened today the Dow would drop 2,965 points on the session to finish at roughly 10,158. You can imagine the depression.

Now you know why they call it “Black Monday,” even though it occurred in a sea of red.

In absolute or percentage terms it was the largest one-day drop ever – beating the 13.6% drop on the worst day of the 1929 crash.

But then again, the 1929 crash was caused only by human beings. The 1987 event, on the other hand, was largely computer-driven. Of such is progress made!

For British observers like me, Black Monday was memorable as being the first business day after the Great Storm, the first hurricane to hit the British Isles since 1703.

The relief at not having lost a third of the British Navy, which happened on the previous occasion, made Black Monday seem a minor hiccup. I actually bought some shares as the U.S. markets opened, and was delighted to see that they closed at a higher price than I paid!

There was also the satisfaction of hearing about a rather smug ex-colleague, who had received a large payout from the bank where we had worked (no such payout came my way, alas) and had invested it and margined 50% in the U.S. market.

Alas, blessed by Fortune though he was, he was awakened at 1:30 am London time by a margin call for $700,000. I always felt it was something of a fitting recompense for greed and creepiness to authority.

How the Market Crashed

Of course, those whose trading lives don’t extend back to 1987 doubtless feel that it can’t happen again.

Well, I have news for you….

The 1987 crash was mostly caused by a primitive computerized trading strategy called “portfolio insurance.” The idea behind this was that investors could not lose too much money if they sold futures every time the market dipped, so that further dips would be matched on the short futures position.

This fallacy became very popular, so that by October 1987 tens of billions of dollars were managed in this way.

Needless to say, it didn’t work. When the market started falling out of bed the computers started maniacally selling futures, which then traded at a discount to shares, causing arbitrageurs to sell shares to match the futures.

The result was an uncontrollable downward spiral, much more severe than had ever been caused by panic among merely human traders.

There was one saving grace: the computers of those days were very sluggish by modern standards, and the market makers were human, so the disaster proceeded at human speed, taking minutes or even an hour or so for each 100 point drop in the Dow.

InOrderofImportance: Self Your Stock in Amazon

phgreat — Sat, 27 Oct 2012 07:44:11 -0400

InOrderofImportance: Self Your Stock in Amazon:

inorderofimportance:

I’ll give you two reasons you should sell your Amazon stock, one altruistic and one self-interested.

Altruistic: They are a horrible company because, they refuse to remit sales tax, they practice predatory pricing, the working conditions in their warehouses are appalling, they bully publishers,…

Data Diversions: Visualizing the Major Stock Market Indices

phgreat — Sat, 27 Oct 2012 07:43:57 -0400

Data Diversions: Visualizing the Major Stock Market Indices:

dfkoz:

Just about every financial news outlet covers three major U.S. stock market indices: the Dow Jones Industrial Average, the NASDAQ Composite, and the S&P 500. These indices are much more interrelated than you might think.

The righthand Venn diagram depicts the relationship between each index…

sherald: Wild. I wish I bought stocks yesterday. #stocks #pse

phgreat — Fri, 19 Oct 2012 07:21:17 -0400

sherald:

Wild. I wish I bought stocks yesterday. #stocks #pse

Trading With Ignorance: It's okay honey, it happens to everyone.

phgreat — Fri, 19 Oct 2012 07:16:35 -0400

Trading With Ignorance: It's okay honey, it happens to everyone.:

tradingwithignorance:

What are you talking about?

Today Google ~~came~~ prematurely released their earnings report much to the joy of short sellers and bears throughout the street.

It happens to the best of us.

No. No it doesn’t.

Companies normally release their earnings reports after the closing bell during a…

pntrade: Today we got a daily buy signal in TIF This is not a...

phgreat — Fri, 19 Oct 2012 07:13:20 -0400

pntrade:

Today we got a daily buy signal in TIF

This is not a recommendation to buy/sell any security or derivative.

Rich ‘Dad,’ Poor Dad and now Bankrupt Dad?

phgreat — Wed, 10 Oct 2012 21:40:03 -0400

Afterward a lengthy, well-paid career writing monetaryself-help books and giving seminars, “Rich Dad Poor Dad” author Robert Kiyosaki has submitted for bankruptcy for one of his companies after trailing a $24 million court judgment.

Kiyosaki’s Rich Global LLC filed for bankruptcy after being ordered to give nearly $24 million to the Learning Annex and its founder and chairman, Bill Zanker.

US District Judge Shira A. Scheindlin in April ordered Rich Global to pay up $23,687,957.21 after a jury ruled Kiyosaki should commit the Learning Annex a percentage of his profits after using their platform for speaking engagements, including a 2002 gig at Madison Square Garden. Rich Global filed for bankruptcy in Wyoming on Aug. 20.

Zanker told us, “I took Kiyosaki’s brand and made it bigger. The deal was I would get a percentage, and he reneged. We had a signed letter of intent. The Learning Annex is the utmost promoter. We put his ‘Rich Dad’ brand on a stage. We genuinely organized him for great fame and riches. But when it was time for him to pay up, he said ‘no.’ ” This has taken years in court. I won even more money than I asked for from the jury, then he declared corporate bankruptcy. Oprah believed in him, and Will Smith believed in him, but he didn’t keep his promise to us.”

Kiyosaki published “Rich Dad Poor Dad” in 1994, and has since written 11 other books. He now does commerce through as a lot of as 10 corporations.

Mike Sullivan, CEO of Kiyosaki’s Rich Dad Co., told us that Kiyosaki, said to be worth $80 million, was still doing very well thanks to investments in other companies: “The dealings we had with Learning Annex were with a company that hasn’t been in business for a number of years … I am not surprised Learning Annex is upset and angry, the money doesn’t exist in that company, and we can’t bring money out of the group.

“Robert and [wife] Kim are not paying out of personal assets. We have a few million dollars in this company, but not 16 or 20. I can’t do anything about a $20 million judgment … We got hit for what we think is a completely outlandish figure.”

tatsuyacrossing: My turnip market crashed.

phgreat — Wed, 10 Oct 2012 01:45:15 -0400

tatsuyacrossing:

My turnip market crashed.

Solomon Grundo: Someone asked me about when to sell stocks, here's an explanation!

phgreat — Wed, 10 Oct 2012 01:44:14 -0400

Solomon Grundo: Someone asked me about when to sell stocks, here's an explanation!:

solomongrundo:

There is no “good” or “bad” time to sell. You sell your stock whenever it reaches a price where you’re happy with the profit. The prices of stocks are totally unpredictable, so there’s no way to tell when it’s a good or bad time to sell a stock. You just check it as often as you want (prices…