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While the rest of the western world's credit ratings are being downgraded one country after another, Asia's ratings are moving up.
Greece's long-term credit rating was cut to Double-C from Triple-C by S&P ratings agency. The debt-riddled country is already the lowest-rated country in the world by S&P. (1)
S&P cut the sovereign credit ratings on Portugal by one notch to BBB- and put the country's outlook on "negative". The BBB- rating is one notch above junk – and the further the country falls towards junk the higher its borrowing costs will be. (2)
The sovereign debt crisis in the western world has been plaguing our planet. It affects the entire financial system of the world. When the US rating was downgraded to AA, the stock market all over the world plunged down. As the cliche goes "when the US sneezes, the world catches cold". This cliche is very true in a sense that, we are interconnected with one another. Or to paraphrase it, the world's stock market is somehow dependent on the US mighty financial muscle.
Thus, the skydiving of the Philippine Stock Market is not a surprise at all. It is expected. No matter how good the fundamentals of the Philipines, it will be affected with the events happening outside the country. But don't worry, THIS IS JUST MINOR ABRASION IN THE GROWTH OF THE PHILIPPINE ECONOMY.
Our stock market will rebound since most of the companies are recording unprecedented growth. In fact, last month while there are days when the world stock market is down, Philippine stock market is performing very well. It reached the highest record last July when PSE breached the 4,500 index. The Makati Business Club are optimistic under the current administration that the economy will improve over the next twelve months. (5)
Today is the most exciting time to invest in the stock market. Stocks are oversold already and there are bargains out there.
To Your Financial Freedom!
(1) http://www.huffingtonpost.com/2011/07/27/sp-further-downgrades-greece-rating_n_911090.html
(2) http://www.guardian.co.uk/business/2011/mar/29/portugal-bailout-possible-standard-poors-rating-cut
(3) http://www.abs-cbnnews.com/business/11/12/10/sp-raises-philippine-credit-rating-economy-grows
(4) http://www.standardandpoors.com/ratings/definitions-and-faqs/en/us
(5) http://www.mb.com.ph/articles/330015/mbc-survey-results-show-vote-confidence-aquino-gov-t
The sovereign debt crisis in the western world has been plaguing our planet. It affects the entire financial system of the world. When the US rating was downgraded to AA, the stock market all over the world plunged down. As the cliche goes "when the US sneezes, the world catches cold". This cliche is very true in a sense that, we are interconnected with one another. Or to paraphrase it, the world's stock market is somehow dependent on the US mighty financial muscle.
Thus, the skydiving of the Philippine Stock Market is not a surprise at all. It is expected. No matter how good the fundamentals of the Philipines, it will be affected with the events happening outside the country. But don't worry, THIS IS JUST MINOR ABRASION IN THE GROWTH OF THE PHILIPPINE ECONOMY.
Our stock market will rebound since most of the companies are recording unprecedented growth. In fact, last month while there are days when the world stock market is down, Philippine stock market is performing very well. It reached the highest record last July when PSE breached the 4,500 index. The Makati Business Club are optimistic under the current administration that the economy will improve over the next twelve months. (5)
Today is the most exciting time to invest in the stock market. Stocks are oversold already and there are bargains out there.
To Your Financial Freedom!
(1) http://www.huffingtonpost.com/2011/07/27/sp-further-downgrades-greece-rating_n_911090.html
(2) http://www.guardian.co.uk/business/2011/mar/29/portugal-bailout-possible-standard-poors-rating-cut
(3) http://www.abs-cbnnews.com/business/11/12/10/sp-raises-philippine-credit-rating-economy-grows
(4) http://www.standardandpoors.com/ratings/definitions-and-faqs/en/us
(5) http://www.mb.com.ph/articles/330015/mbc-survey-results-show-vote-confidence-aquino-gov-t
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